The indexes weakened on the backs of very weak large cap tech names but there were pockets of major strength in the optics, semi, AI-related type stocks. This remains a tricky tape as we are below the Weekly and Daily EMAs yet select individual names are significantly outperforming. Not usually what we see. With the positive divergence on NYMO in effect I am open to working up off this support zone (QQQ-580, SPY-650) but also note that each time the 10 Week has Crossed the 20 Week it has led to more elongated corrections. Trying to study the action to establish a strong opinion which I lack currently. Lets look at the charts.

QQQ Weekly-Inside week so far as we continue to push down since resisting at the 5 Week. We closed the weekly gap today. Not much to say other than we remain under the weekly EMAs.

QQQ Daily– We filled the gap up today as we followed through down on yesterdays 200SMA/10EMA rejection. Today was Day two in the O'neil FTD count. W remain under the declining daily EMAs. 595 is the first resistance level (breakdown/back-test) to re-take and 580ish is the longer term support level to push down through.

SPY Daily– The SPX still has the gap up open as this had better relative action today. Remains under all the moving averages.

NYMO Daily-Positive divergence still intact with a higher low made as the SPY made a lower low. A secondary indicator but worth being aware of.

MAGS Daily– Following through down off the 60 back-test as this is looking more and more like a clean downtrend. Large cap tech is a total avoid.

SMH Daily-Remains in the 327.50×420 consolidation. Getting back through the 50SMA around 400 and building in the top half of the range would be a good first step. Waiting for more info as it consolidates. Relative strength today. If it pushed up on 400 probably worth trying one of these semi related names that pepper the watchlist.

FSLY Daily– Resting on lighter volume. Stops rising with the 10EMA.

YOU Daily– Strong follow through but then retreating in the afternoon. Still looks good. 10EMA up to yesterday's break out day low and would be the stop area.

SNDK Daily– Still supporting on the 10EMA with the 65 Min looking to potentially follow through up. If had any weakness the gap fill at 661.62 and the 20EMA is a support zone to watch.

STX Daily-Also holding up well with WDC. MU has been weaker since earnings but outside of the optics group the memory names still look like one of the top sectors.

LITE Daily-Triggering through the highs as the optics names were on fire today…..AAOI VIAV CIEN GLW etc. I am not involved but any market relief and would think this sector continues to outperform.

VRT Daily– Potential if it can ever push out through the highs at 276.78. 272s is a minor area too.

PL Daily-Lots of volatility as this continues to chop around. As the 10EMA catches up would like to see the trade tighten up some. That is a rising support level have alerts on though as this continues to develop.

TER Daily-Pushing through the 314 level after testing it yesterday. This was technically a trigger and if took it max pain stops would be the curling 10/20EMA. With the indexes I chose to let this close these gaps and setup more. Will continue to see how this builds as weakens this last gap.

GLW Daily-Also triggering the 135.28 level. Whether involved or not this is great as it has the potential to build the right side of a new base, fill these gap levels, and potentially setup a new buy area. If took the entry today would keep stops under the trigger or the curling 10/20EMA at work.

CRCL Daily– The strongest stock in the market the last month drops 20% in a day. Reminder to scale some partial profits in this tape and execute your stops.

Strong Stocks: PL TER LITE GLW CRCL SNDK MU WDC BE CAVA NBIS VRT SOLS AXTI AAOI FSLY