Market Top Signals & AI Stock Dive

Summary

The S&P 500 closed at a lower low, a key indicator for a potential market top, with a further confirmation expected if a lower high follows a bounce. Producer Price Index data showed hotter-than-expected inflation at 6.5% year-over-year and a significant 1.1% increase month-over-month, suggesting rising consumer prices ahead. Despite geopolitical tensions, oil prices are down. The AI trade is dominating market focus, with an upcoming SpaceX IPO and companies like SMCI, Google, and Oracle raising substantial capital by selling shares. SMCI dropped 28% after announcing a $7 billion stock sale, diluting shareholders by 30%. Oracle is also raising $40 billion, with $20 billion from share sales, and is facing liquidity concerns due to debt. Technical analysis suggests potential downside for oil and further drops for Oracle, with a swing trade target around $135-$140. Micron, a key AI stock, has faded from pre-market highs but remains up, though a bearish chart pattern is forming. Apple's support level around $87-$88 is expected to break. Gold is trading near $4100, a critical pivot low, with a long-term downside target of $3500-$3600, and is currently acting like a risk asset. Silver is testing the $64 level, with a potential drop to $54 if it breaks. Bitcoin is showing a short-term bullish pattern with a potential upside bounce as long as it holds the $60,700 level.