Cracks Are Widening: Tech Pullback Deepens
During the past few days, I have been cautioning subscribers about a spike in volatility, backed by technical factors that were clearly documented, including cracks in the technology sector. More specifically, semiconductors are currently printing a bearish week: $VanEck Semiconductor ETF(SMH)$ and $Advanced Micro Devices(AMD)$ are both down -6% for the week, and $Micron Technology(MU)$ has declined -11%.
Last night, I highlighted the risks of a decline considering price action for the $S&P 500(.SPX)$ and $NASDAQ 100(NDX)$ , since the structure for both indices had a downside magnet. Tech indeed was the main driver of today’s selloff.
The bearish resolution today is no surprise from a technical perspective, and the CPI data served as the catalyst for this likely move since it came hotter than the market expected.
The probabilities for a rate hike at the end of this month passed to 32% from 22% last night, the market is reacting to this spike, the central daily level of 7,801 for SPX and 7851.7 for the ES=F were lost early in the morning, and then the key central weekly levels. Tomorrow we have PPI data, the market context and technical charts with targets are below.
The SPX is my core index, but I study a constant watchlist of stocks, ETFs, Crypto, and other indices, helping subscribers to navigate their preferred stocks and market rotations. Following the high-probability setups posted last Saturday, key targets have been reached 🎯:
-
$NVIDIA(NVDA)$ : Anticipated a decline targeting 224.5 and then 219.7 for a -4.2% drop, and that exact level was hit today.
-
$Advanced Micro Devices(AMD)$ : The bearish setup targeted 589, and then 571.7 for a -6% move this week, and price closed at that level today.
-
$Invesco QQQ(QQQ)$ : Anticipated a decline targeting 732.8 for a -2.5% drop; that target was exceeded today, with the weekly decline currently at -2.9%.
However, as I always emphasize, market rotation is constant. Alongside those downside targets, I also highlighted bullish setups 🎯:
-
$Costco(COST)$ : Targeted 976.8 for a +3.2% gain. This target has already been surpassed.
-
$Wal-Mart(WMT)$ : Set with an extended target of 116.9, for a +5% gain about to be completed.
Markets are always moving - and sometimes, the best move is knowing what works for you.
With Treasury yields, oil prices and rate expectations keeping markets on edge this week, investors are once again thinking carefully about where to position next. There’s no one-size-fits-all choice in investing — and the same goes for Tiger Merch. This month’s hot picks are in, featuring the Tiger Toiletry Bag, Universal Travel Adapter, Tiger Umbrella and more favourites chosen by fellow Tigers.
Explore the Monthly Hot Picks in Tiger Coin Mall, now 12% OFF for a limited time.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
