MarketSurge powers the charts in this video.
Range-bound action dominated in the past week. Most of the morning gaps quickly faded later in the day; many of the extremes mean-reverted. Most AI stocks were in a correction mode in the last three weeks. Last week, we finally saw them stabilizing and bouncing. Some of the stronger names just went sideways and are now setting up for a potential breakout – DELL, AMD, CRDO, ALAB, etc. Just as semis rose, software stocks lost momentum. After strong bounces, CRWD, TWLO, OKTA, NET, SNOW, NTAP, and AKAM, among others, took a break. Another rotation within tech.
Biotech was the super-performer of the past month or so, when XBI gained more than 20%. That momentum fizzled last week as XBI closed near the lows of its weekly range. I would not be surprised if we see it test its 20EMA.
Despite all those sector rotations under the surface, the main indexes remain in a range. This might continue until September unless a new strong catalyst appears out of nowhere. There are plenty of individual stock catalysts on the horizon. The new earnings season begins next week with financials reporting first. In the meantime, the ceasefire in the Middle East is over, so we will keep an eye on the price action in energy and chemicals. Oil didn’t get its luster back last week, but select stocks like CF are starting to look more appealing.
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