Investors have been treated to one heck of a rally by the Semiconductor Sector (NASDAQ:) with stocks like Nvidia (NASDAQ:) leading the sector and stock market higher.

But the semiconductor sector may be nearing a crossroads.

Is it breakout time or break time for the red-hot semiconductors sector?

Today’s long-term “monthly” chart of SMH highlights this very conundrum.

Currently, this market-leading sector is trading around 3 percent below important dual resistance at (1). This level represents the top of a long-term trading channel as well as the 461.8% Fibonacci extension level.

A breakout would be a very bullish development for the stock market, while a consolidation or pullback may signal “break time” for the broader market.