KEY
TAKEAWAYS
- The S&P 500 and Nasdaq closed at file highs, with know-how shares, particularly semiconductors, driving the positive factors.
- Whether or not you are monitoring indexes, sectors, or particular person shares, the StockCharts Market Abstract web page helps to chop by the noise and make sense of the market’s worth motion.
- Use indicators similar to transferring averages and momentum indicators to assist spot early indicators of a shift.
The final day of buying and selling for the primary half of 2025 ended with a bang. The S&P 500 ($SPX) and Nasdaq Composite ($COMPQ) closed at file highs — a formidable end, given the yr has seen important swings.
We noticed indicators of traders rotating into know-how shares final week when the Nasdaq 100 ($NDX) hit a file excessive. Trying on the one-week timeframe within the US Indexes tab within the Equities panel within the StockCharts Market Abstract web page, the $NDX has seen the most important proportion achieve (+3.76%) and is buying and selling 9.94% above its 200-day easy transferring common (SMA). The Nasdaq Composite is an in depth second, with the identical proportion achieve and buying and selling 8.92% above its 200-day SMA.
FIGURE 1. EQUITIES PANEL OF THE MARKET SUMMARY PAGE. Right here, you see a snapshot of the one-week efficiency of the most important US indexes and the way far they’re from key transferring averages. Picture supply: StockCharts.com. For academic functions.
Is the Expertise Rally Secure?
With know-how shares taking the lead once more, it is value checking to see if market breadth helps the transfer.
- Bullish P.c Index. The %Bullish P.c Indexes panel exhibits the Nasdaq 100 at 74%, which is in favor of the bullish transfer in know-how shares.
- New Highs vs. New Lows. On Monday, roughly 10% of shares within the Nasdaq 100 hit all-time highs, whereas 0% of shares hit a 52-week low. The semiconductor trade is the top-performing bellwether trade.
Armed with this information, let’s break down the Expertise sector. Trying on the MarketCarpets format, we will see that software program and semiconductors occupy a good portion of the sector. The biggest cap-weighted shares are all within the inexperienced — Microsoft Corp. (MSFT), NVIDIA Corp. (NVDA), Broadcom, Inc. (AVGO), Taiwan Semiconductor Mfg. (TSM), and Oracle Corp. (ORCL).
FIGURE 2. MARKETCARPET OF THE ONE-WEEK PERFORMANCE OF THE TECHNOLOGY SECTOR. Mega-cap shares similar to MSFT, NVDA, AVGO, TSM, and ORCL had been sturdy performers. Picture supply: StockCharts.com. For academic functions.
Three semiconductor shares — NVDA, AVGO, and TSM — make up a lot of the transfer in the whole sector, which makes it value taking a look at a chart of the semiconductor shares.
Semis Keep Sturdy
The six-month day by day chart of the VanEck Vectors Semiconductor ETF (SMH) under exhibits a transparent uptrend, with the 21-day exponential transferring common (EMA) sloping up and the 50-day SMA about to cross above its 200-day counterpart.
FIGURE 3. SIX-MONTH DAILY CHART OF THE VANECK VECTORS SEMICONDUCTOR ETF (SMH). The ETF has been in a gradual uptrend and is near its all-time excessive. The RSI is above 70, and the PPO histogram is hovering above zero. Each help the bullish transfer in SMH, but it surely’s value keeping track of momentum. Chart supply: StockCharts.com. For academic functions.
The relative energy index (RSI) is above 70 whereas the proportion worth oscillator (PPO) histogram is simply above zero. Regardless of Monday’s comparatively flat day, all of the above information help a bullish development. A slowing momentum could be the primary alarm bell for a pullback, with the primary help being the 21-day EMA. That may be an opportune time to observe the trade and, if you happen to’ve thought-about including both particular person semiconductor shares or ETFs to your portfolio, it is value monitoring the value motion. Worth may both reverse after hitting a key help degree or proceed falling.
As we head into the second half of 2025, the efficiency of semiconductors and know-how shares will dictate the route of the market.
The Backside Line
In a market that flip-flops from someday to the following, you would possibly want a serving to hand to forestall you from getting emotionally sidetracked. The Market Abstract web page is your compass, if you’ll, that helps you make sense of the market’s twists and turns. Visiting the web page must be part of each investor’s routine.
Disclaimer: This weblog is for academic functions solely and shouldn’t be construed as monetary recommendation. The concepts and methods ought to by no means be used with out first assessing your individual private and monetary state of affairs, or with out consulting a monetary skilled.
Jayanthi Gopalakrishnan is Director of Web site Content material at StockCharts.com. She spends her time developing with content material methods, delivering content material to coach merchants and traders, and discovering methods to make technical evaluation enjoyable. Jayanthi was Managing Editor at T3 Customized, a content material advertising and marketing company for monetary manufacturers. She was the Managing Editor for TD Ameritrade’s thinkMoney journal.
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