MarketSurge powers the charts in this video.
Last weekend, we observed that the main indexes managed to close above their 20-week moving averages. They followed through and had five consecutive green days. The good mood is back. People are getting excited about a “Santa Claus rally” in December.
NVDA and PLTR were the undisputed leaders in 2023, 2024, and the first half of 2025. This hasn’t been the case lately. Unlike the Nasdaq 100, both remain firmly below their 50-day moving averages and show notable relative weakness lately. There are new leaders in town – GOOGL and AVGO. The AI data centers component stocks have also recovered relatively quickly and are looking to continue to outperform – some examples include MU, COHR, CRDO, CLS, and VRT.
In the meantime, biotech continues to fly, lifting the small-cap index with it. Small caps outperforming is one of the main risk-on signs. Besides, if a negative reaction to NVDA’s earnings and accusations of creative accounting cannot bring the market down, I don’t know what can, at least for the time being.
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