We are losing the AI trade, and the rotation underneath is starting to change the whole market. In this one I break down why the MAG 7 have turned defensive, the negative divergence I am watching on the IWM, and why the S&P breaking the hourly 50 has my attention. This is a time to be on defense, not pressing the long side.
Target is on my watch list with ideal squeezes on multiple time frames while sitting in a strong, bullish trend. I want either a pullback into $130 to time a long, or a break and close above $140 to play the upside. My line in the sand is a break below $125, which has me protecting capital.
The SPX is sitting in a big wedge with ideal squeezes firing on the 4-hour, 2-hour, and 30-minute charts, so I am leaning toward at least one more pop before this move is done. I am long the names that look strong to the upside, not shorting the top, while I keep a close eye on my exits.
AMD dropped 4.21% with the semis today, but the trend is still intact. It only pulled back to the 21 EMA, wicked, and bounced, and I’m still looking for it to trade higher into earnings. A lot rides on what ASML and Taiwan Semi do this week.
