The SIA Electronics and Semiconductors EWI (EWI559) has been the top relative performer within the SIA Market Sectors report from a weekly, monthly, and quarterly perspective, with absolute performance of 11.45%, 27.33%, and -3.71%, respectively. Given these relative moves, and against the backdrop of a broader market that might be brushing up against overhead resistance remaining from 2024 market top, let’s take a moment to review the shares of one of the largest names in the sector, Nvidia (NVDA).
In the attached SIA matrix position chart, it can be seen that shares of NVDA moved out of the favored green zone of the SIA NASDAQ 100 Index Report in early 2025. This move led the broader market down into a tailspin. Shares then proceeded into the unfavored zone of the report, until recently, when they began to rally and have now entered the neutral zone. In the attached point and figure chart, this is shown with the SIA matrix position overlay tool applied to the 2% scaled chart. Note the recent move into the yellow zone, where shares are not only rallying but are also gaining in relative performance. This rally, however, might need to be contextualized against a zone of overhead resistance (see red circle).
The more immediate $135.94 resistance level is coupled with a band of resistance ending at the all-time high, where resistance at $150.09 might indicate the bull market is back. From a near-term perspective, the SIA SMAX score—a measure against a basket of alternate asset classes—is still toggled positive with a perfect 10 out of 10 reading, while the Electronics and Semiconductor sector remains in the neutral zone within the SIA sector report. Support is observable on the point and figure chart at $123.12 (3-box reversal level), $116.02, and the notable $93.31 level, which marked the bottom during the early 2025 market selloff.
In effort to window-pane this rally, the chart of the SIA Electronics and Semiconductor EWI (EWI559) shows that the sector is now holding at the neutral level within the SIA Market Sectors report and carries an SMAX score of 5 out of 10 against other asset classes, again illustrating that shares of NVDA might suggest outperformance relative to other sector constituents. Here, the EWI index might now be brushing up against resistance at 85,786.06, with a zone of potentially heavy resistance (see red oval) between this level and the upper zone at 102,612.78. A negative trend level at 88,385.47 is notable as well. Taken together with the chart of NVDA, the next leg of the recovery might be a much steeper wall of worry, as any buyer caught in the melee at market highs might now be eager to re-evaluate positions. This might lead to a period of price discovery for both the sector and the stock.
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