As we await the Semiconductor Equipment sector's Book-to-Bill data for June, we observe that Semiconductor sector leadership (SOX-SPX) is still intact in the US stock market.

This sector is noteworthy because it was a real indicator in early 2013 of the general strength to come in manufacturing (Semi Equipment cycles often do that) and later, employment and the ‘services' economy.

Today SOX-SPX rests at a decision point and the bulls have the ball as long as that point is not violated. The answer here will be especially important given that its 2013 indicator running mate, Palladium-Gold, is very bearish now.