📺 SHOULD YOU CHASE THIS RALLY?
$MU /
$SNDK FROM LEADERSHIP TO WEAKNESS
$AMZN THE BEST MAG 7 STOCK?
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$MU $SNDK updates:
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The market is entering what has historically been a stronger seasonal period, but I am still not convinced this rally is ready to break to new highs just yet.
While
$SPY has climbed back toward the top of its recent range near $749-$750, the real question is whether AI/tech can finally regain leadership.
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There is a growing divergence between
$SPY and
$QQQ.
While
$SPX remains relatively resilient,
$QQQ broke below its prior trading range last week and now faces major resistance around $723.
If
$QQQ is rejected there, it would reinforce the idea that institutions are selling tech rallies rather than buying them, making it much harder for the broader market to sustain a breakout.
My approach near resistance is simple: trim winning positions, trail stops, and let the first hour of trading reveal whether buyers or sellers are in control.
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I did add some bullish exposure during last week's dip, buying
$AMZN,
$TSLA, and
$META call options to gain upside exposure with defined risk.
Among the Mag7,
$AMZN stands out as one of the few charts beginning to improve.
While it hasn't been a market leader, the stock is quietly rebuilding and would become much more constructive if it can reclaim the $249.50 area.
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On the other hand, semiconductor leadership continues to deteriorate.
$MU has broken below its 21-day moving average for the first time during this advance after losing support around $1032, signaling a meaningful change in trend.
Rather than chasing it lower, I want to see whether the stock is rejected on any bounce back toward resistance before considering new bearish positions.
$SNDK has undergone a similar shift.
One of the market's strongest momentum names just weeks ago, it abruptly reversed last week, trapping late buyers and triggering a high-probability short setup.
I am now watching whether sellers defend the $1860 resistance zone, which would confirm the stock has transitioned from leadership into a sustained period of weakness.
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So, AI/tech remains the market's deciding factor.
If
$QQQ fails to reclaim $723 and semiconductor weakness continues,
$SPY could struggle to push through $749-$750 despite supportive seasonality.
However, if buyers step back into quality mega-cap names like
$AMZN while tech stabilizes, the broader market may still have a path toward new highs.
Until then, I favor disciplined risk management over aggressively chasing the rally.
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