- Moving the market
Stocks opened lower and stayed under pressure for most of the day, even after Nvidia and Salesforce dropped their latest earnings.
The big disappointment was Nvidia—despite beating on both earnings and revenue, shares got pumped early then dumped about 5%, putting it on track for its worst day since April.
Traders basically shrugged off the numbers and took profits. Other chip names followed suit: Broadcom, Lam Research, Western Digital, and Applied Materials all fell more than 6%.
Salesforce bucked the trend a bit, rising 2% after beating on both top and bottom lines, but it wasn’t enough to lift the broader tech sector.
The weakness ties back to ongoing fragility in software and cybersecurity—investors are still nervous about AI tools potentially disrupting incumbent vendors’ businesses. The Mag 7 were a big drag again, but the rest of the S&P 493 held roughly flat.
In the end, only the Dow and small caps managed small green closes—the Nasdaq was the day’s biggest loser.
Bond yields eased (pushing rate-cut expectations higher), the dollar gained overall despite a late sell-off, and the metals were mixed: spot gold chopped between $5,150 and $5,200 but the gold ETF closed green, silver eked out a gain, and Bitcoin followed tech lower before bouncing back to $68k.
Today’s big question: why did Nvidia underperform after such a strong beat? Simple answer—classic “sell the news” profit-taking.
2. Current domestic “Buy” Cycle (effective 5/20/2025); International “Buy” Cycle (effective 5/8/25)
Our domestic bullish cycle that began on November 21, 2023, concluded on April 3, 2025, following a market downturn triggered by President Trump’s tariff policy announcement.
This development caused significant declines across major indexes and broader market indices. However, markets subsequently rebounded, culminating in a new domestic “Buy” signal taking effect May 20, 2025.
Concurrently, our International Trend Tracking Index (TTI) experienced parallel volatility. On April 4, 2025, it breached critical thresholds, prompting a “Sell” recommendation. This position reversed as global markets recovered, with the International TTI regaining sufficient momentum to issue a new “Buy” signal effective May 8, 2025.
3. Trend Tracking Indexes (TTIs)
It was one of those up-and-down days where things never quite found a clear direction.
Tech took the biggest hit despite some positive Nvidia earnings buzz, dragging the Nasdaq lower and keeping the broader market on edge.
Small caps ended up being the real winner, holding up much better and outperforming the rest of the pack.
The metals were all over the place early but steadied late—the gold and silver ETFs managed to squeak out small green closes despite the chop.
Our TTIs split the difference: the international one basically treaded water, while the domestic one pushed ahead nicely with a decent advance.
This is how we closed 02/26/2026:
Domestic TTI: +8.76% above its M/A (prior close +8.15%)—Buy signal effective 5/20/25.
International TTI: +12.67% above its M/A (prior close +12.63%)—Buy signal effective 5/8/25.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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