NEW YORK ( TheStreet) -- Semiconductor stocks, including Intel (INTC) - Get Report, are in full retreat today after Micron (MU) - Get Report reported disappointing fourth-quarter earnings. Intel's plunge could eventually lead to a low-risk buying opportunity for patient bulls.
The Market Vectors Semiconductor ETF (SMH) - Get Report is off just shy of 3.25% on its heaviest selling pressure since late March. Micron's poor quarter is dragging down other PC-related names as well. Hewlett-Packard (HPQ) - Get Report is trading at new 2015 lows, while Texas Instruments (TXN) - Get Report has completely erased Monday's powerful breakout and is now trading near its June low.
Intel is taking a major hit. The stock is off over 3% and is the biggest loser in the Dow Jones Industrials. Volume is running fairly heavy, and this will be the heaviest downside since the March 12 flush.
Intel opened today's session with an ugly downside gap. Shares have drifted lower since the bell and at midday are stabilizing near the early June low. The slight rebound that began June 15 has now been wiped out setting shares up for further downside.
Today's breakdown will spark the second leg of the steep pullback that began June 1. For patient bulls, the result will open a low-risk buying opportunity. If Intel continues to drift lower in the near term on easing downside pressure and begins to pierce the $29.70 area, it will enter a solid support zone.
The stock's October 15 spike low is $29.65. The March low, which left behind a key upside reversal on the 26th, rests at $29.35. It's likely this area will attract considerable buying interest when tested.
At the time of publication, Morrow was long Intel.