The broader US stock indices are on pace for new record closes, but beneath those headline gains, the leadership picture looks different. The once-dominant Magnificent Seven are not all sharing in the record-setting run. Nvidia remains the standout, while the other six have more work(and for some “a lot” of work) to match the strength of the indices.
That divergence has been a recurring theme this year. There have been periods when investors rotated toward semiconductor companies outside the Magnificent Seven, including AMD, Micron and Intel. The AI story has also become more selective: investors are weighing the benefits flowing to infrastructure suppliers against the enormous spending commitments—and still-developing returns—of the companies building that infrastructure. Leadership has shifted within the technology sector as well as beyond it.
For traders, the distinction matters. An index at a record high does not automatically give every stock within it a bullish technical bias. A familiar name and a strong long-term story still need support from the price action.
In the video, I go through Apple, Microsoft, Amazon, Alphabet, Meta, Tesla and Nvidia individually, using my technical tools to define three things: the bias, the risk and the targets. Who controls the price? What level would change that view? And where does the price need to go next to give buyers—or sellers—more confidence?
Some may be building a foundation for a catch-up move. Others may still need to reclaim key resistance before buyers can take control. The technicals give traders a way to tell the difference—and a level to lean against while waiting for the next shove.
If you own any of these stocks, watch and learn the key levels in play. If you don’t own them, watch and learn. The technical levels tell a story that can be replicated for any stock that you do own.
This article was written by Greg Michalowski at investinglive.com.