Following Oracle's revenue miss and sharp decline, Broadcomm Technologies previously a strong chip leader failed to lift its stock despite positive earnings, projected next quarter revenue doubling to $19.1 billion, and a dividend increase. Shares fell 5% in premarket trading. The company's disclosure of $73 billion in unfulfilled orders over the next six quarters sparked market concerns. As year end approaches, sector rotation accelerates, with AI concepts and tech stocks under pressure while value and cyclical stocks attract sustained capital inflows.
Banks continue hitting new highs, emerging as the most stable and robust sector. Credit card stocks V/MA/AXP saw rating upgrades and rebounded sharply yesterday. Previously weak chemicals staged an oversold rebound, while retail stocks began catching up. Metals like copper, aluminum, lithium, gold, and silver rose in succession, with some industrial leaders also performing well. The Dow and small cap indices hit new all time highs. The S&P approached previous highs pre market, while the Nasdaq lagged behind.
SPY will test resistance at the previous historical high of $690-$691 upon opening. A swift breakout above this level could signal further gains. If it falls below $687 within the first half hour, bears will gain the upper hand, prolonging the recent two week range bound pattern. $682 becomes the key support level for a potential downside test.
Today's focus remains on whether yesterday's oversold tech leaders can sustain their rebounds. Key stocks like MSFT, ORCL, META, NVDA, and AMD must swiftly reclaim critical mid term resistance levels; failure to do so signals ongoing medium to long term corrections. Yesterday's sharp gains in credit card and chemical sector leaders appear unsustainable in the short term, making them key observation targets today.
This represents my personal view and strategy for reference only.