Chip stocks break a bear trap after a $3 trillion rout — here are the levels bulls need to hold

Chip bulls sprang a bear trap on Tuesday. Two sessions later, the floor under it has cracked. The PHLX Semiconductor Index (^SOX) is down about 6% Thursday, slicing below 11,000 — the support that rescued the group twice since September. A bear trap is a breakdown that quickly reverses, catching traders who bet on further losses. This one only worked as long as that floor held. The index is on track for its worst day since July and its lowest close since July 29. The damage is piling up. All 60 stocks in a Yahoo Finance chip basket are down since Oct. 6, erasing about $3 trillion in market value, more than $800 billion of it Thursday alone.