Market Shake-Up: Big Tech Dips as Small Caps Soar

Summary

This morning, equities are trading slightly higher after a week of steady selling that pushed markets down to the 50-day moving average. While there's a bounce today, market internals show lingering weakness. Magnificent 7 tech stocks are falling, averaging declines, while companies like SpaceX and other tech innovators are taking the lead. Despite potential for further downside in big tech, small growth stocks like Micron are surging with high volume and significant volatility, experiencing pops of 40% in five days followed by 21% drops. This high volatility stage is characterized by large gaps up and down, indicating uncertainty. The NASDAQ is up 1% with similar price action, and the Russell 2000 is grinding higher as money rotates out of potentially overvalued big tech into small caps. Defensive sectors like utilities and real estate ETFs are also showing strength, moving higher or breaking through resistance, reflecting diversification strategies. In commodities, the dollar is pausing after a breakout, gold is down nearly 1%, and silver is down 1.3%, both showing bearish patterns. Bitcoin is in a downtrend with a minor pause, and oil, despite a 1% rise today, has been fading and is currently in a downtrend, though a relief bounce to the $80 mark or higher is anticipated. Bonds have rallied to resistance at the 100% measured move and the 150-day moving average, suggesting a potential reversal. SpaceX, after an initial pop, is at a critical support level, with chart patterns indicating potential for a significant 45% decline. This could negatively impact future IPOs.