Closelook@Charts
Records Without the Chips — the Divergence Now
The S&P 500 and the Nasdaq 100 set records on 6 October and cloud funds hit new highs — but the chip funds are 10–19% below their June highs. Meanwhile staples, discretionary and financials bounced from their late-September lows. Next week’s earnings may give the clue.
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Transcript
0:00 The S&P 500 and the Nasdaq 100 are at records. The chips are not.
0:04 When the leaders stop confirming, the charts send a message. Here is today’s.
0:10 The S&P 500 and the Nasdaq 100 set records on 6 October. Cloud funds hit new highs on Friday.
0:15 Chips did not: SOXX is 15% below its June high, the equal-weight XSD 19%.
0:20 Since 22 June the Nasdaq 100 is 2% higher. The chip fund is 15% lower.
0:25 A new record without the old leaders: that is the divergence.
0:30 Meanwhile the rally widened: staples, discretionary and financials bounced from their late-September lows.
0:35 This week: consumer staples +3.6%, discretionary +2.6%, financials +2.3%.
0:40 Next week’s earnings may give the clue: the big banks Tuesday, ASML Wednesday, TSMC Thursday.
0:46 Do the chips catch up, or does the market move on without them?
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Research diary, not investment advice. Figures as stated in the video, to the date shown.