A meaningful move in Technology today but one which creates a tricky short-term process for those that had derisked.. and while some stocks look quite good here technically, many of the Memory & Semis maintain bearish weekly momentum which will take time Both $TNX and Crude have to be watched carefully headed into 8/12-14 as uptrends could certainly kick into gear for both which have been tailwinds for risk assets in recent weeks. In my video tonight, i discuss a strategy for the best way to attack Tech for those who care. Below is #IBD# Equal-weight Technology ETF I'll be doing my monthly call on Thursday this week which comes at a timely period and encourage clients to join @marketsurge @IBDinvestors #ibdpartner#

Outside of Tech, $XLI was hard hit today, & $LII $PSN $VFC, $VRT $DBD, $ACHC all suffered abnormally big losses as XLI broke its trend from late March. While Tech losses thus far have not really spread to other parts of the market which have been strong of late, like HC, Fins, which along with Industrials, all made new highs in the last month, it's important to keep a close eye on these given that Tech losses have accelerated of late. The bifurcation has grown w/ Equal-weighted SPX having made new All-time highs yesterday but meanwhile SPX, QQQ just broke short-term support I'll be discussing this in notes in the days ahead, but today's XLI break is not dissimilar from what happened in $DJI and both look to have short-term downside given today's break. Selectivity is important for those short-term oriented @marketsurge @IBDinvestors #IBDPartner#

Despite $QQQ having broken June and July lows, we saw healthy gains in sectors like Healthcare, Financials, Utilities and Industrials ($XLI shown here) Many parts of Aero/Defense starting to rebound along w/ many Transportation names w DJT minor breakout back in mid-July This broad-based recovery in many sectors is actually quite healthy during a time when many are starting to turn more bearish ahead of Hyperscaler earnings. hmm @IBDinvestors @marketsurge #IBDPartner#

$ADM back up to highest since 2023 While most of Materials has proven choppy of late given precious metals weakening as real yields lift, Food stocks like Archer Daniels Midland continue to push higher the longer the Strait remains not fully open. $ADM pushed up to the highest levels in nearly three years last week, so while many continue to keep a close eye on Tech into earnings, it's important to keep an eye on the Foodstuffs as the Grains push higher. Rotation, rotation, Rotation @IBDinvestors @marketsurge #IBDPartner#

IBM plunge might have caught many off-guard, but there were certainly signs of $IBM starting to trade a lot more erratically as of early last year beginning with a series of deep retracements Then, the IBM pullback from Nov '25 into May '26 overbalanced in time & undercut the last major Swing low. Despite a subsequent robust shakeout back to new highs, the broader structure had already begun to weaken quite a bit in morphing from an intermediate-term bull into more of a multi-yr sideways pattern & monthly MACD rolled over to negative early this year. Volume also began to show much greater signs of distribution & spiking on many of the "down" days in recent months. It goes without saying that $212 now becomes critically important, though right above a 50% retracement of the low-to-high range since '20. No position & important to let this stabilize before trying to be the hero. @IBDinvestors @marketsurge #IBDPartner#

We'll see what's more important as Bank Earnings face off vs. CPI tomorrow am. Long-dated yields have begun to press higher in US, Financials have outperformed sharply since early June & widely expected superb trading revs while IPO's and deal flow remain at multi-yr highs Note, the Financials trade isnt just about big investment banks anymore as Commercial banks, Regionals, Insurance have all come to life lately. A very helpful part of the market outside of Healthcare at a time when Tech has been consolidating, bit by bit A benign CPI coupled with a non-revealing Warsh would likely take July off the table & make Sept the odds-on favorite @marketsurge @IBDinvestors #IBDPartner#

Computer Networking now making its move & ranked #3# by #IBD# out of 145 sector rankings @Marketsurge While i continue to advocate selectivity within Tech given the extent of the deterioration in recent mths, it's encouraging to see stocks like $ANET $RDWR $EXTR play catchup to the CSCO, DGII of the world #InvestorsBusinessDaily# I find these multi-week base breakouts partcularly constructive as SPX is on the verge of its own triangle breakout #IBDPartner#

Following a lost decade, we're finally seeing some of the large-cap Biotech stocks like $BIIB participate in this move in HC which had been primarily small-cap driven in XBI Note that this not only has exceeded prior lows from '22 but also prior lows from '16 & volume proved above-average on the most recent surge in June While most might be trying to bottom-tick Semis, important to note that Financials, Industrials, and yes, Healthcare pushed up to new all-time weekly high closes, making a balanced approach prudent given how bifurcated Tech has become @IBDinvestors @marketsurge #IBDPartner#