Technology takes the lead
Recall that last week, the Dow industrial average moved modestly higher (+0.67%) while the S&P 500 (-1.95%), Nasdaq Composite (-4.48%) and Nasdaq 100 (-5.49%) all fell. The the chip and AI sector were particularly vulnerable
Today, that performance has flipped. The Dow is modestly lower, while the broader indices are finding buyers:
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Dow industrial average: −0.15%
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S&P 500: +0.41%
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Nasdaq Composite: +0.88%
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Nasdaq 100: +1.11%
Helping lead the recovery are chip and AI-related stocks, with SanDisk up 6.54%, Intel gaining 4.41%, and SK Hynix advancing 4.10%.
Last week, CoreWeave fell approximately 25% (currently up 2.18%), SanDisk lost 17.9% (up 6.54% today), Lam Research dropped 17.2% (up 4.88% today), and Western Digital declined 16.4% (up 5.40% today). Micron fell 14.6% (up 4.16% today), Intel lost 14.2% (up 4.95% today), and AMD declined 13.0% (up 3.25% today). Even Nvidia, which held up better than those names, fell 6.6%.
That puts today’s gains into perspective. Buyers are taking a shot, but there is still work to do to repair last week’s technical damage. Getting back above—and staying above—key moving averages and broken swing areas would help turn a rebound into a more bullish technical picture.
The next question is whether the buyers can build on those gains.
The broader market helps define the roadmap
Individual stocks have their own stories. Earnings, company news and sector developments can all drive price action. However, the S&P 500, Nasdaq Composite and Nasdaq 100 give traders a broader view of market sentiment.
That perspective matters. Is your stock moving higher with support from the broader market? Or is it trying to rally while the major indices remain under pressure?
The same technical tools apply to both: moving averages, swing areas and retracement levels help define the bias, the risk and the next targets. Looking at the broader indices alongside an individual stock can make the trading roadmap clearer.
What has today’s rebound changed?
A higher price is a start, but where the price trades relative to key technical levels tells us more. Have the buyers taken back control? Are they testing resistance? Or do the sellers still have the stronger hand despite today’s gains?
In the video above, I look at each of the three broader indices individually, outlining what today’s price action has done to the technical bias, where traders can define risk, and which targets come next.
The buyers are making a push. The technical levels will help tell us how much progress they are making, but understand there is work to do to erase some of the sharp declines seen last week. Watch and learn.
This article was written by Greg Michalowski at investinglive.com.