$SPX Rallies While $MSFT and $AMZN Flash Warning Signs
Tech stocks drove another strong session, with $SPX breaking higher while $MSFT and $AMZN showed very different technical setups.
$S&P 500(.SPX)$ pushed through a major breakout level, helped by softer-than-expected inflation data and renewed strength across technology stocks.
The 5-day moving average continues to support the uptrend and remains the key short-term trend guide. The oscillator is already in overbought territory, but today's candle still points to continued momentum.
The main risk to watch is $VIX, which has moved slightly higher and could signal rising short-term volatility.
$Microsoft(MSFT)$ is taking a more cautious path. Previous moves above the upper Bollinger Band were followed by pullbacks toward the 20-day moving average or lower Bollinger Band.
After another push above the upper band, the stock has now entered consolidation, with two downside gaps sitting below current price. Whether those gaps eventually get filled will be an important test for the next move.
$Amazon.com(AMZN)$ is showing the clearest bearish setup of the three.
The reversal signal was identified last Monday, with the move above the upper Bollinger Band and the subsequent gap lower among the key warning signs. The latest price action continues to point to weaker momentum, putting the open gap firmly on the watchlist.
The next move will show whether this is simply a short-term pullback or the start of a deeper retracement.
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