Memory Stock Rally Fizzling? Trade Setups Unpacked

Summary

Despite a rally in memory stocks like AMD and ARM, broader market indices like the S&P 500 are showing signs of overextension, with potential negative RSI divergence suggesting a market top. Today, options expiration and triple witching could also influence price action, with a sell-off expected towards the end of the day and a more substantial decline anticipated for Monday. In the SOXX index, a breakdown of an upswing trend line signals a potential retrace to around $638.41, a shortable level with a stop-out above $63,958 on a 15-minute close. Micron (MU) is also in an uptrend but showing negative RSI divergence, with a potential shortable level at $187.99 and a stop-out above $1,110.40 on a daily close. Microsoft (MFST) is eyed for a long play with a potential downside target at $366.82. SanDisk is consolidating below an upswing trend line, with an entry around $218.51 and a stop-out above $218.9 for a day trade. AMD has a shortable level at $542.52. Wayfair has a shortable level at $91.48. ACN is a potential swing trade opportunity with a long level at $121.58. IBM presents a long-day trade opportunity at $240.27. Tesla's long level is at the double bottom of $380.15. While some stocks are still in uptrends, signs of trend reversal are present in others.