Slippery Slope:  

It is well known that technology has not been living up to its traditional leadership role. On a YTD basis, it is still in the middle of the pack up 7%, and of course, with tomorrow’s CPI a lot could change quickly. The daily chart of the Nasdaq feels like it is stalling, although give it credit for being just 2% off its most recent all-time highs even though it has declined 4 of the last 5 weeks (one could interpret that as churning too). The WEEKLY chart shows it is also still nearly 2000 handles above its 50 WEEK SMA. Peering inside the sector semis are bending, but have not buckled yet with the SOXX hanging in and CLOSING positive Tuesday even with NVDA and SMCI off 3%. The latter is now about 100 handles below the very round 1000 number which we wrote recently about the level being a bearish island reversal (notice now it is clinging to the 50-day SMA and it does not feel like it has a very firm grip). If one were to look at the Bollinger Bands they are tightening which speaks to a big move coming the direction however ambiguous. Tighten your seat belts for the rest of this week.

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