Tech Broke a Major Support Level
Wall Street endured a volatile week as a deeper pullback in major technology stocks snapped recent winning streaks in the $S&P 500(.SPX)$ . For that reason, we closely tracked the $Invesco QQQ(QQQ)$ $NASDAQ 100(NDX)$ in our daily market analysis this week.
Semiconductors remain under pressure. This week alone, the market darlings continued to be punished: $Advanced Micro Devices(AMD)$ lost -11%, $Micron Technology(MU)$ -13%, $Broadcom(AVGO)$ -7%, and $NVIDIA(NVDA)$ -4%. The semiconductor ETF $VanEck Semiconductor ETF(SMH)$ we tracked throughout the week, fell -9%.
China’s newly unveiled “Moonshot” AI model and valuation concerns added pressure to the weak conditions we identified in last Saturday’s Weekly Compass for the SMH, NVDA, AVGO, and AMD, especially considering their failure to hold essential price levels after reversing from overbought conditions I highlighted in this publication in June, when many people were euphoric and skeptic about the overbought conditions in semis.
Technicals are proving their worth alerting about overextensions in semiconductors, just as they did with GLD and SLV since March, with $Palantir Technologies Inc.(PLTR)$ since November, and with $Netflix(NFLX)$ since July 2025.
That said, the NDX dropped -4% this week, breaching a highly relevant level and printing a major crossover. July is not proving to be as bullish as macro analysts suggest based on statistics (biased when there is a bias in years selected). A few weeks ago, I shared in this publication that the winning streak for July is starkly different if you compare the last 20 years to the previous 20; the story is completely inverse. For that reason, I always recommend analyzing charts and remaining skeptical of statistical tables that do not reflect the price action story behind every year analyzed.
Friday is our day for mapping the support and resistance levels for the week ahead. Below, you will find the levels where institutional algorithms are most likely to react. Numbers always tell the truth, and the weekly lows for $Tesla Motors(TSLA)$ , AMD, NVDA, and $Alphabet(GOOG)$ to name a few, they matched these levels (376, 468, 197, and 345.5, respectively)… same for the highs of the week for $Apple(AAPL)$ $Wal-Mart(WMT)$ $Exxon Mobil(XOM)$ to name a few (337, 117, 149, respectively).
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