Headwinds/Setup for Gold – Copper & Base Metals Strong – Copper Miners Setup

Today’s report looks for life within the technology sector (sans semiconductors). Yes, there are signs of life. The Software iShares and SPDR surged off support zones the last two days. Cloud Computing joined with a surge off the 200-day SMA. Elsewhere, the Medical Devices ETF broke triple bottom resistance and the Telecom ETF is setting up. $IGV $XSW $SKYY $IHI $IYZ

SPY is stuck in a trading range because of group rotations under the surface. Since June, money moved out of tech, communication services and consumer discretionary. This money found its way into industrials, healthcare and finance. The fate of SPY hinges on QQQ, tech and semis. $SPY $QQQ $XLK $SMH $SOXX $DRAM $NVDA

The Utilities SPDR is holding up relatively well since June as money rotates out of the Technology SPDR, Consumer Discretionary SPDR and Communication Services SPDR. These three are down more than 5% since June (36 trading days), while the Utilities SPDR sports a 3.40% gain. There is also promising action on the price chart as XLU holds its wedge breakout and shows strong breadth. This report will also highlight two stocks within the sector. $XLU $CEG $VST

The Aerospace/Defense and Infrastructure ETFs are correcting within long-term uptrends and moderately oversold. I see broad strength within infrastructure and mixed performance within aerospace-defense. Copper and based metals are leading within the commodity space and the Copper Miners ETF is setting up bullish. $ITA $IFRA $CPER $DBB $COPX

The stock market moved into corrective mode over the last few weeks as the major index ETFs traded sideways. QQQ and SPY consolidated since June, while small-caps (IJR) and mid-caps consolidated in July. Software ETFs show relative strength as bullish setups emerge in AI ETFs. $SPY $RSP $QQQ $XLK $IGV $XSW $AIQ $ARTY $DTCR $IDGT $SMH $SOXX $DRAM

The bull market remains in place with rotations under the surface. Tech led the way higher in April-May, but took a backseat since June and corrected. After massive advances, tech stocks are entitled to a corrective period. Other sectors picked up the slack as finance, industrials and healthcare moved higher. This means SPY is basically flat since June as tech weakness is offset with strength elsewhere. Thus, SPY and QQQ remain in corrective mode, as are the AI ETFs (AIQ, ARTY). Utilities are strong since June as XLU extends on its breakout and energy ETFs turned up in July. $SPY $QQQ $XLK $AIQ $ARTY $XLV $KRE $PBW $XBI $MOO $XLU $XLE $XOP $OIH $FCG

Today’s report targets QQQ, the tech sector and the semiconductor industry. Tech is the biggest sector in SPY and QQQ, while semiconductors account for around half of the tech sector. QQQ and XLK are in correction mode, while SMH and SOXX pulled back over the last two weeks. All four are still in long-term utprends and bullish setups could be emerging. We finish with two stocks: Nvidia and Broadcom. $QQQ $XLK $AIQ $SMH $SOXX $NVDA $AVGO