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China Treading Water:   There was a time not too long ago were incessant chatter about how domestic markets were being strongly overshadowed by international. That has quieted down dramatically and the daily chart below of the KWEB shows how for 2 months it has been a tough go of it against US internet players (via the FDN). Ratio charts compare action on a relative basis remember and does not mean that the 2 instruments being looked at can not act robust absolutely speaking. If the KWEB can stabilize here just above the 50-day SMA good things may begin to happen. A bullish golden cross is plausible with the 21-day EMA potentially moving above the 50-day SMA and notice the last time that occurred in January it set off a nice thrust upward. Among the top 10 holdings my favorite set up in NTES which registered the best earnings reaction jumping 15% on 5/15 and now rests just 2% off most recent 52-week highs. It is now well extended above a 106.77 double bottom breakout and look for some digestion here. A break above a possible bull flag pivot of 122.50 carries a measured move to 140. Here one can see how this has been dominant against peers BABA, JD, and PDD since the market rally lows of 4/7. Leaders show their true colors during times of stress. Pay attention.

Stalling or Resting? Has the robust move from the early August lows near 15000 to the current peak at the very round 19000 number a bit too much too soon? The daily chart of the Nasdaq shows that path and I believe it will go on to retest that former peak right above the 20000 figure. Its WEEKLY chart shows May recording the first bullish MACD crossover since last October, which was from well above the zero line, unlike this one. The move BELOW the bull flag in Q1 exacerbated the big 25% drawdown, as we know from FALSE moves come fast one in the opposite direction. It is now above the 50 WEEK SMA, and not only did the very rare WEEKLY gap from last week hold (first in 2.5 years) but it rose more than 7% and CLOSED at highs for the WEEKLY range. A cup base could be taking shape, and when and if it touches 20000 again and a break above that area could see a measured move toward 25000, perhaps sometime in 2026. META has not been spoken about much since its 20-day win streak earlier in 2025 has carved out a handle on its double-bottom base with an add-on trigger of 662.77. Are the big mega-cap techs ready to assume leadership?

Tech Back in Vogue: Salty veteran traders insist that no rally can persist without the financials participating, but it is always good to see technology thriving. There is a feeling of "risk on" again and could there be more gas in the tank? I believe so as more breakouts are being recorded, and the daily chart of the Nasdaq below shows a strong breakout and follow-through after Monday's bullish hammer Tuesday up another 3%. It has cleared the 200-day SMA and here it could be considered a break above a bullish inverse head and shoulders formation trigger of 18000 (and notice how the benchmark has ignored the doji candle circled from 5/8). The depth of the pattern registered a bullish counterattack candle at the very round 15000 figure on 4/7 and look for this to achieve a measured move to 21000 sometime in early Q2. Nothing goes up in a straight line and bulls should look for some consolidation in this area but tech via, the XLK just crossed into the black for 2025 and wants more. If this rare WEEKLY gap holds by Friday's CLOSE it would be the first in more than 2.5 years and it is now back above the 200-WEEK SMA too.

Material World: The materials space via the XLB recorded a doji candle last week ending a 4-week win streak which investors must be aware of, but the WEEKLY chart below shows this on a likely path to the very round 90 number in a double bottom base and possibly higher into the second half of 2025. As many feel this sector is dominated by gold, the top 2 holdings in LIN and SHW make up one-quarter of the ETF. SHW looks good as long as it remains above the 345 area and this could be in the early stages of carving out the right clavicle in a bullish inverse head and shoulders pattern. ECL, the fourth largest component, has now put a handle on its double bottom base and enter with a buy stop above a 257.38 trigger. Other interesting developments in the top 10 names include FCX starting to outperform SCCO advancing 21% over the last one-month period, with SCCO adding "just" 10%. Keep an eye on MLM which has reclaimed its 200-day SMA in May and is now bull flagging above the secular line. A decisive move above 550 could see a measured move to 610.

Industrial Revolution: One major S&P sector has been making its presence felt over the last one quarter. The industrials have quietly been climbing the leaderboard and this is a group one wants to take a very close look at if this rally is just getting started. Over the last one week the XLI is the best performer up nearly 3%. Over the last month, it is the second best of 11 sandwiched between the surging technology and discretionary spaces, and during the last 3 months, it is the 3rd best behaved. Solid consistency fueled by defense, aerospace, and waste services. Perhaps not the most sexy, and within the most economically sensitive areas are fragile including railroads, delivery services, trucking, and airlines. Ideally, bulls would like to see the IYT play some serious catch up to the XLI on a PRICE comparison chart here. I still get a chuckle out of the top holdings list with UBER being the second largest and it is now well above the 77.68 double bottom breakout pivot from 4/24 and any pullback toward 80 should be bought aggressively (even rival LYFT is up after market handsomely). Remember the days of TSLA up, UBER down correlation? Me neither. Rounding out the entire group is the bullish action of the XLI below. This move could just be getting started.