{"id":83296,"date":"2026-08-16T17:36:23","date_gmt":"2026-08-17T00:36:23","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=83296"},"modified":"2026-08-17T10:31:06","modified_gmt":"2026-08-17T17:31:06","slug":"from-ai-to-small-caps-how-market-breadth-broke-out","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2026\/08\/16\/from-ai-to-small-caps-how-market-breadth-broke-out\/","title":{"rendered":"From AI to Small Caps: How Market Breadth Broke Out"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong>The Market Breadth Summary: Breakout<\/strong><\/h2>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#e9f3ff\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<ul class=\"wp-block-list\">\n<li>The move from AI to small caps broadened market participation as AT50 broke to a three-month high and AT200 remained in breakout territory.<\/li>\n\n\n\n<li>The iShares Russell 2000 ETF reached an all-time high despite rising long-term bond yields, adding confirmation to the expansion in market breadth.<\/li>\n\n\n\n<li>AI-related trades recovered unevenly, with CoreWeave surging after earnings while some critical semiconductor stocks still faced important technical resistance.<\/li>\n\n\n\n<li>The VIX closed at a new low for the year while financial conditions remained extremely loose, supporting a cautiously bullish stance alongside increased hedging.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Stock Market Summary<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/drduru.com\/onetwentytwo\/2026\/08\/02\/market-absorbs-an-ai-crash-yet-resolves-nothing-the-market-breadth\/\">AI crash<\/a> from July 29th feels like a distant memory. <a href=\"https:\/\/drduru.com\/onetwentytwo\/2026\/08\/10\/from-ai-crash-to-all-time-highs-what-powered-rebound-the-market-breadth\/\">The subsequent breakout to all-time highs<\/a> quickly erased the sting and returned the market to a rally that knows no obstacles. Now, market breadth has broken out and further confirmed the market&#8217;s underlying bullishness. Various AI-related trades are still in recovery and rally mode and small caps leaned into expanding market breadth. All this happened alongside a CPI (Consumer Price Index) report that met expectations and further softened the case for a rate hike in September. A weak retail sales report on Friday further softened the case and should have reduced bond yields. Instead, the rates on long-term bonds increased and drove the iShares 20+ Year Treasury Bond to a fresh 24+ year low. The bond market is screaming and stocks have not listened ever since the brief scare from <a href=\"https:\/\/inflationwatch.drduru.com\/warsh-doubled-down-on-jawboning-even-as-the-fed-fights-over-rate-hikes\/\">last month&#8217;s Fed day<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/insight.factset.com\/sp-500-reporting-highest-revenue-growth-since-q4-2021\">Strong earnings reports<\/a> are helping the stock market to ignore negative catalysts. Just as importantly, financial conditions are extremely loose despite high bond yields. <a href=\"https:\/\/www.bentinpartners.ch\/financial-conditions\">The Bloomberg (BBG) U.S. Financial Conditions Index<\/a> was <a href=\"https:\/\/finance.yahoo.com\/markets\/article\/markets-just-flipped-the-script-on-kevin-warshs-fed-chart-of-the-day-114428977.html\">last this loose in 1996<\/a>. The <a href=\"https:\/\/www.chicagofed.org\/research\/data\/nfci\/current-data\">National Financial Conditions Index (NFCI) from the Federal Reserve Bank of Chicago<\/a> also shows very easy financial conditions thanks to expanding leverage and credit. These are positives for risky assets like stocks.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2026\/08\/20260816_easy-financial-conditions.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1185\" height=\"708\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2026\/08\/20260816_easy-financial-conditions.png\" alt=\"easy financial conditions\" class=\"wp-image-83299\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2026\/08\/20260816_easy-financial-conditions.png 1185w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2026\/08\/20260816_easy-financial-conditions-768x459.png 768w\" sizes=\"auto, (max-width: 1185px) 100vw, 1185px\" \/><\/a><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">Thus, while I remain cautiously bullish on the stock market, I also worry that such extremes will not last much longer. With the volatility index (VIX) at a new low for the year, I will actively buy put options to partially hedge bullish trading positions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>S&amp;P 500 (SPY)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The S&amp;P 500 (SPY) ground its way to a fresh all-time high on Thursday. From current levels, the index looks positioned for a quick rise to 7900. A near-term pullback will likely find firm support at the 20-day moving average (DMA) (dashed line) and especially the 50DMA (red line) given its convergence with the prior &#8220;7,500 wall&#8221; and former double-top.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-136.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1524\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-136.png\" alt=\"The S&amp;P 500 (SPY) nudged lower 0.2% from its all-time high.\" class=\"wp-image-83229\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-136.png 1524w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-136-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-136-1320x798.png 1320w\" sizes=\"auto, (max-width: 1524px) 100vw, 1524px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>The S&amp;P 500 (SPY) nudged lower 0.2% from its all-time high.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>NASDAQ (COMPQ)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The NASDAQ (COMPQ) also churned higher for the week. The tech-laden index remains below its all-time high set at the beginning of June but at least it hurdled its level where it traded when SpaceX (SPCX) recorded its all-time high. The NASDAQ is positioned technically similarly to the S&amp;P 500: either a quick pop to 27,200 and a new all-time high, or a quick drop to test converged support at the 20DMA and 50DMA.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-137.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1524\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-137.png\" alt=\"The NASDAQ (COMPQX) is slowly but surely stretching to challenge its all-time high.\" class=\"wp-image-83231\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-137.png 1524w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-137-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-137-1320x798.png 1320w\" sizes=\"auto, (max-width: 1524px) 100vw, 1524px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>The NASDAQ (COMPQX) is slowly but surely stretching to challenge its all-time high.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>iShares Russell 2000 ETF (IWM)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The iShares Russell 2000 ETF (IWM) has enjoyed an orderly rally since its breakout above 50DMA resistance. Climbing stairs off all-time highs, the ETF of small caps has defied the parallel rise in bond yields. IWM is typically sensitive to the bond market given so many of the companies in the ETF carry high debt loads. Friday&#8217;s 0.5% gain to an all-time high included a run-up into the close of trading. My limit order for weekly call options never filled, so I am looking for any dip on Monday to jump into a belated trade.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-138.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-138.png\" alt=\"In a sign on ongoing strength, the iShares Russell 2000 ETF (IWM) closed the week at its all-time high.\" class=\"wp-image-83232\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-138.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-138-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-138-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>In a sign of ongoing strength, the iShares Russell 2000 ETF (IWM) closed the week at its all-time high.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>The Short-Term Trading Call From AI to Small Caps<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>AT50<\/strong>&nbsp;(MMFI)&nbsp;= 62.6% of stocks are trading above their respective 50-day moving averages<\/li>\n\n\n\n<li><strong>AT200<\/strong>&nbsp;(MMTH) = 61.3% of stocks are trading above their respective 200-day moving averages<\/li>\n\n\n\n<li><strong>Short-term Trading Call<\/strong>: cautiously bullish<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">AT50 (MMFI), the percentage of stocks trading above their respective 50DMAs, closed the week at 62.6%, a fresh 3-month high.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">My favorite technical indicator achieved a clean breakout above its trading range on Thursday&#8217;s small gap higher. Before that move, AT50 looked like it would settle back into the previous trading range. Now, AT50 is providing confirmation of the market&#8217;s underlying bullishness as market breadth slowly but surely expands. <\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-140.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-140.png\" alt=\"\" class=\"wp-image-83234\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-140.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-140-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-140-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">AT200, the percentage of stocks trading above their respective 200DMAs, closed the week at 61.3%. While this indicator of the longer-term health of market breadth closed at the exact same level as the prior week, AT200 remained in clear breakout territory. The 6-month high added more confirmation of the stock market&#8217;s underlying bullishness.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-141.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-141.png\" alt=\"\" class=\"wp-image-83235\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-141.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-141-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-141-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">The volatility index (VIX) trended downward all week as part of a month-long downtrend. At a new closing low for the year, the VIX symbolically wiped away all the market&#8217;s concerns and troubles of the year. The last surge that accompanied the Situational Awareness blow-up now looks like a complete washout of fear and motivated sellers. This extreme in complacency is short-term bullish for the stock market, yet these levels cannot persist for an extended period of time. Since the pandemic, the longest period dominated by sub-15 VIX trading ran from November 2023 to July 2024, interrupted by two brief and sharp spikes. Thus, while it is possible to enjoy the market&#8217;s complacency here as a bull, I am also keenly aware that this extreme is also a rare opportunity to buy protection or hedge at very cheap prices.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-142.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-142.png\" alt=\"The volatility index (VIX) closed at a new low for the year.\" class=\"wp-image-83236\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-142.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-142-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-142-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>The volatility index (VIX) closed at a new low for the year.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Equities<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>CoreWeave (CRWV)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: CoreWeave is an AI-native cloud infrastructure provider built to run large-scale AI training and inference workloads.<br><strong>Technical status<\/strong>: CoreWeave (CRWV) gapped above 50DMA and 200DMA resistance with a 19.3% post-earnings gain. Yet the stock only returned to its value from a month ago and remained stuck in a months-long trading range.<br><strong>Trade commentary<\/strong>: CoreWeave was an example of AI leadership holding while participation expanded elsewhere. <a href=\"https:\/\/seekingalpha.com\/news\/4631186-coreweave-expects-12_4b-13_2b-of-2026-revenue-while-raising-year-end-active-power-target-to\">The company reported<\/a> Q2 revenue reached $2.575 billion, more than double year-over-year, while revenue backlog approached $104 billion (excluding more than $25 billion of net new commitments added early in Q3). The company also increased active power to 1.5 GW and contracted power to roughly 3.7 GW, underscoring how aggressively AI infrastructure demand is still scaling. <a href=\"https:\/\/seekingalpha.com\/news\/4631385-coreweave-rises-after-raised-outlook-demand-keeps-analysts-bullish\">Analysts increased price targets from less bearish to more bullish<\/a>: &#8220;Wells Fargo increased its price target to $160 from $155 while maintaining its Overweight rating on the shares&#8230;CoreWeave also saw its price target raised to $74 from $67 at Bernstein; to $155 from $126 at Truist; and to $105 from $90 at Barclays.&#8221;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-143.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-143.png\" alt=\"\" class=\"wp-image-83237\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-143.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-143-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-143-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>CoreWeave (CRWV) gapped above 50DMA and 200DMA resistance with a 19.3% post-earnings gain. Yet the stock only returned to its value from a month ago and remained stuck in a months long trading range.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Micron Technology (MU)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Micron Technology manufactures memory and storage semiconductors, including DRAM, NAND and high-bandwidth memory used across data centers, AI systems and other computing markets.<br><strong>Technical status<\/strong>: Micron Technology (MU) nudged above 50DMA resistance for the second time in a month. A higher close will confirm the breakout and make me a buyer.<br><strong>Trade commentary<\/strong>: MU rose for a fourth consecutive trading day on Friday, gaining another 2.3% to $970.20. The stock closed just a hair above 50DMA resistance, setting up a critical make or break week of trading. I am a buyer on a higher close.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-144.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1524\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-144.png\" alt=\"\" class=\"wp-image-83238\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-144.png 1524w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-144-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-144-1320x798.png 1320w\" sizes=\"auto, (max-width: 1524px) 100vw, 1524px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Micron Technology (MU) nudged above 50DMA resistance for the second time in a month. A higher close will confirm the breakout and make me a buyer.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Workday (WDAY)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Workday provides cloud-based human capital management and financial-management software to enterprises.<br><strong>Technical status<\/strong>: Workday (WDAY) gained as much as 29.8% on rumors that Silver Lake wants to buy the company. The move briefly erased all the stock&#8217;s losses for the year.<br><strong>Trade commentary<\/strong>: WDAY gained 17.8%, fading from an intraday gain of 29.8%, after <a href=\"https:\/\/www.reuters.com\/world\/silver-lake-talks-buy-workday-sources-say-2026-08-13\/\">Reuters reported<\/a> that Silver Lake was in talks to acquire the company. Importantly, the move pulled other software stocks higher and contributed to the breakout in market breadth. If true, this news adds one more validation of <a href=\"https:\/\/drduru.com\/onetwentytwo\/2026\/04\/09\/introducing-pairos-a-multifaceted-measure-of-ais-impact-on-software-companies\/\">my PAIROS framework<\/a> that counter-traded against the SaaSpocalypse. I treated WDAY as a trading stock, and I never got around to doing the core analysis. I bought back into shares on Friday&#8217;s 3.8% pullback and am prepared to accumulate down to 200DMA support (the blue line).<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-145.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-145.png\" alt=\"\" class=\"wp-image-83239\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-145.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-145-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-145-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Workday (WDAY) gained as much as 29.8% on rumors that Silver Lake wants to buy the company. The move briefly erased all the stock&#8217;s losses for the year.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>iShares Expanded Tech-Software Sector ETF (IGV)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: IGV is an iShares ETF that tracks North American software companies along with select interactive-media and services businesses.<br><strong>Technical status<\/strong>: The iShares Expanded Tech-Software Sector ETF (IGV) stopped short of challenging its June parabolic peak.<br><strong>Trade commentary<\/strong>: IGV benefited from the WDAY news with a 3.1% gain. Friday&#8217;s 2.1% reversal puts the current run-up in jeopardy given IGV stopped short of challenging resistance created by the June parabolic peak.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-146.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-146.png\" alt=\"\" class=\"wp-image-83240\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-146.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-146-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-146-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>The iShares Expanded Tech-Software Sector ETF (IGV) stopped short of challenging its June parabolic peak.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Aramark (ARMK)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Aramark provides food, hospitality and facilities services to businesses, schools, healthcare organizations, sports venues and other institutional customers.<br><strong>Technical status<\/strong>: Aramark (ARMK) gained 8.5% post-earnings and continued closing above its upper Bollinger Band for new all-time highs.<br><strong>Trade commentary<\/strong>: <a href=\"https:\/\/seekingalpha.com\/news\/4630899-aramark-targets-9-percentminus-10-percent-fiscal-2026-organic-revenue-growth-as-nexus\">Aramark reported strong earnings results and increased guidance<\/a>. On August 11, the company reported 9% revenue growth, 18% operating-income growth and more than $1.6 billion of fiscal-year-to-date new client wins. Most importantly, the company also disclosed that it had begun providing hospitality services at a Texas AI data-center site for a major hyperscaler, with a second location being mobilized and additional sites potentially ahead. Aramark&#8217;s ascension to the category of &#8220;AI trade&#8221; aptly symbolizes the growing influence of the AI-related economy. I am a buyer on dips.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-147.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-147.png\" alt=\"\" class=\"wp-image-83241\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-147.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-147-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-147-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Aramark (ARMK) gained 8.5% post-earnings and continued closing above its upper Bollinger Band for new all-time highs.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Rapid7 (RPD)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Rapid7 provides AI-powered cybersecurity products and managed security services focused on detection, response and exposure management.<br><strong>Technical status<\/strong>: Rapid7 (RPD) gained 15.3% post-earnings after a sharp fade from the intraday high. Sellers almost reversed all the gains before the stock resumed upward momentum.<br><strong>Trade commentary<\/strong>: <a href=\"https:\/\/drduru.com\/onetwentytwo\/2026\/08\/02\/market-absorbs-an-ai-crash-yet-resolves-nothing-the-market-breadth\/\">Two weeks ago<\/a>, I pointed to RPD&#8217;s perfect bounce off 50DMA support. The stock followed through so well, I held on to my position through earnings. Unfortunately the strong fade from the post-earnings intraday high stopped me out of my position. I wanted to preserve profits. Despite the return of sellers on Friday, the stock actually looks positioned to continue its uptrend from its 50DMA support and 200DMA breakout.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/seekingalpha.com\/news\/4630388-rapid7-signals-exit-2026-at-20-percent-non-gaap-operating-margin-following-12-percent\">Rapid7 revenue<\/a> fell 1.5% year-over-year to $210.9 million and ARR declined 2%, but the company produced $28.9 million of non-GAAP operating income and $31.9 million of free cash flow. The company focused investment around its core platform and AI foundation. Susquehanna&nbsp;raised its price target on RPD from $7 to $15 (a little late!), but maintained a neutral rating. The rating makes sense given RPD already hit the price target at its post-earnings intraday high.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-148.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-148.png\" alt=\"\" class=\"wp-image-83242\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-148.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-148-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-148-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Rapid7 (RPD) gained 15.3% post-earnings after a sharp fade from the intraday high. Sellers almost reversed all the gains before the stock resumed upward momentum.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Red Robin Gourmet Burgers (RRGB)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Red Robin operates and franchises casual-dining restaurants centered on gourmet burgers and related menu offerings.<br><strong>Technical status<\/strong>: Red Robin Gourmet Burgers (RRGB) surged 21.3% post-earnings to a 2 1\/2 year high.<br><strong>Trade commentary<\/strong>: In late June, <a href=\"https:\/\/drduru.com\/onetwentytwo\/2026\/06\/28\/surprising-rotation-into-bullish-divergence-the-market-breadth\/\">I described my willingness to keep holding RRGB<\/a>. Unfortunately, I was stopped out of my position in mid-July. I tightened my stop in order to preserve profits in the face of what looked like tenuous support at the uptrending 20DMA. I think I sold near the exact low of that day. Now all I can do is watch as a post-earnings surge further validates my latest bullish case for RRGB.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Earnings results demonstrated ongoing momentum. <a href=\"https:\/\/seekingalpha.com\/news\/4632076-red-robin-outlines-2026-adjusted-ebitda-guidance-of-70m-73m-while-advancing-96m-refranchising\">The burger joint reported<\/a> comparable restaurant revenue up 1.3%, with traffic down only 0.2% (the company\u2019s best quarterly traffic performance since Q1 2023). Restaurant-level operating margin improved to 14.7%, the best second-quarter level since 2022. The company also highlighted agreements to refranchise 116 restaurants for an expected $96 million of gross proceeds, giving it additional flexibility to reduce debt and invest in the business.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-149.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-149.png\" alt=\"\" class=\"wp-image-83243\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-149.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-149-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-149-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Red Robin Gourmet Burgers (RRGB) surged 21.3% post-earnings to a 2 1\/2 year high.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>VanEck Semiconductor ETF (SMH)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: SMH is a VanEck ETF designed to track major U.S.-listed semiconductor production and semiconductor-equipment companies.<br><strong>Technical status<\/strong>: The VanEck Semiconductor ETF (SMH) churned its way into a test of 50DMA resistance and left the primary short-term downtrend intact.<br><strong>Trade commentary<\/strong>: SMH stalled for most of the week under 50DMA resistance. The AI trade is not free and clear until SMH confirms a 50DMA breakout. In the meantime, a primary downtrend remains in place.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-150.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-150.png\" alt=\"\" class=\"wp-image-83244\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-150.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-150-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-150-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>The VanEck Semiconductor ETF (SMH) churned its way into a test of 50DMA resistance and left the primary short-term downtrend intact.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Cerebras Systems (CBRS)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Cerebras Systems develops wafer-scale AI processors and infrastructure designed for high-speed AI training and inference.<br><strong>Technical status<\/strong>: Cerebras Systems (CBRS) rallied into earnings only to lose 11.9% after reporting. Still, a bottoming pattern is emerging as the stock levitates above 20DMA and 50DMA support.<br><strong>Trade commentary<\/strong>: CBRS continues to fascinate me more than I trade it. Even after a post-earnings disappointment, the stock looks like it is slowly bottoming above its IPO price of $185. I am looking to  buy again if the converged 20DMA and 50DMA hold as support. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On August 12, <a href=\"https:\/\/investors.cerebras.ai\/news-releases\/news-release-details\/cerebras-systems-fast-inference-cloud-business-nearly-quadruples\" target=\"_blank\" rel=\"noreferrer noopener\">Cerebras Systems reported<\/a> that core revenue more than doubled to roughly $210 million while GAAP cloud revenue grew 281%, and it disclosed 600 MW of contracted data-center capacity plus plans to expand manufacturing capacity more than 10x in 2026. Yet <a href=\"https:\/\/seekingalpha.com\/news\/4632278-cerebras-slumps-after-q2-but-analysts-remain-positive-some-see-a-buying-opportunity\">revenue and margins failed to meet the market\u2019s high expectations<\/a>. Analysts maintained lofty <a href=\"https:\/\/seekingalpha.com\/news\/4632278-cerebras-slumps-after-q2-but-analysts-remain-positive-some-see-a-buying-opportunity\">price targets<\/a>: &#8220;Wedbush increased its price target to $290 from $280 with a Buy rating&#8230;Morgan Stanley raised its price target to $279 from $273 on the stock with an Overweight rating&#8230;Citi reduced its price target to $320 from $340 but maintained its Buy rating&#8230;Needham reiterated its Buy rating and $300 price target.&#8221;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-151.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-151.png\" alt=\"\" class=\"wp-image-83245\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-151.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-151-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-151-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Cerebras Systems (CBRS) rallied into earnings only to lose 11.9% after reporting. Still, a bottoming pattern is emerging as the stock levitates above 20DMA and 50DMA support.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Applied Materials (AMAT)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Applied Materials supplies semiconductor manufacturing equipment, materials-engineering systems and related services used to produce advanced chips.<br><strong>Technical status<\/strong>: Applied Materials (AMAT) tested 50DMA resistance for two weeks before a 5.1% post-earnings loss confirmed resistance.<br><strong>Trade commentary<\/strong>: AMAT remains in a bearish position thanks to its post-earnings fade from 50DMA resistance. <a href=\"https:\/\/seekingalpha.com\/news\/4633034-applied-materials-expects-10_25b-q4-revenue-amid-projected-2026-packaging-growth-of-more-than\">Applied Materials reported<\/a> fiscal Q3 revenue hit a record $9.12 billion, up 25% year over year, while non-GAAP EPS reached a record $3.50. Management specifically pointed to AI-driven demand and strength in DRAM, leading-edge foundry logic and advanced packaging. I am watching and waiting to see whether AMAT can return to its previous bullish momentum.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-152.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-152.png\" alt=\"\" class=\"wp-image-83246\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-152.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-152-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-152-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Applied Materials (AMAT) tested 50DMA resistance for two weeks before a 5.1% post-earnings loss confirmed resistance.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Arista Networks (ANET)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Arista Networks develops high-performance cloud and AI networking platforms used by data centers, enterprises and hyperscale customers.<br><strong>Technical status<\/strong>: Arista Networks (ANET) resumed momentum after fully reversing its post-earnings gain.<br><strong>Trade commentary<\/strong>: <a href=\"https:\/\/drduru.com\/onetwentytwo\/2026\/08\/10\/from-ai-crash-to-all-time-highs-what-powered-rebound-the-market-breadth\/\">A week ago, I thought ANET looked topped out<\/a>. When the stock opened last week with a 1.5% gain, I recognized <a href=\"https:\/\/swingtradebot.com\/equities\/ANET\/recent-events?page=2#results_section\">a &#8220;calm after the storm&#8221; techincal pattern<\/a> that can set up a profitable rebound. I enjoyed two days of healthy gains before the sellers returned. Now I need to see the stock rebound from filling its last gap higher.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-153.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-153.png\" alt=\"\" class=\"wp-image-83247\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-153.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-153-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-153-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Arista Networks (ANET) resumed momentum after fully reversing its post-earnings gain.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Freshworks (FRSH)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Freshworks develops cloud-based customer-service, IT-service and employee-experience software for businesses.<br><strong>Technical status<\/strong>: Freshworks (FRSH) rallied to a 9-month high thanks to continued post-earnings momentum above 20DMA support.<br><strong>Trade commentary<\/strong>: Freshworks participated in the Oppenheimer Technology, Internet &amp; Communications Conference on August 12. The stock surged 8.9% the next day. I hope to keep riding momentum higher from here.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-154.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-154.png\" alt=\"\" class=\"wp-image-83248\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-154.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-154-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-154-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Freshworks (FRSH) rallied to a 9-month high thanks to continued post-earnings momentum above 20DMA support.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Reddit, Inc (RDDT)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Reddit operates an online platform organized around user-created communities and interest-based discussions.<br><strong>Technical status<\/strong>: Reddit, Inc (RDDT) gapped above 50DMA support for a 12.6% gain on news of S&amp;P 500 inclusion. However, the stock closed right at 200DMA resistance.<br><strong>Trade commentary<\/strong>: Two weeks ago I made the case that RDDT&#8217;s bullish case remained intact despite the market&#8217;s post-earnings disappointment. I followed up by purchasing an August $160\/$175 call spread. I took profits on that position and my shares after the S&amp;P 500 announced RDDT will soon join the index. Based on how I trade these events, I treat S&amp;P 500 inclusion news as a potential short-term top signal just <a href=\"https:\/\/youtube.com\/shorts\/pNlKkJgbaFA?feature=share\">as I explained in March<\/a> when news hit about Vertiv (VRT) joining the S&amp;P 500. So I am fine waiting on the sidelines for the dust to settle before jumping back into a RDDT position.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-162.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-162.png\" alt=\"\" class=\"wp-image-83262\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-162.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-162-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-162-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Reddit, Inc (RDDT) gapped above 50DMA support for a 12.6% gain on news of S&amp;P 500 inclusion. However, the stock closed right at 200DMA resistance.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Fastenal (FAST)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Fastenal distributes industrial and construction supplies including fasteners, safety products, tools and related inventory-management solutions.<br><strong>Technical status<\/strong>: Fastenal (FAST) broke out and rallied to all-time highs before a three-day pullback left the stock down for the week.<br><strong>Trade commentary<\/strong>: FAST is working out <a href=\"https:\/\/drduru.com\/onetwentytwo\/2025\/10\/18\/market-breadth-remains-broken-final-convulsions-before-stock-markets-next-melt-up\/\">as I had hoped back in October<\/a>, albeit at a slower pace. Last week&#8217;s all-time high keeps me in the game and holds my interest.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-155.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-155.png\" alt=\"\" class=\"wp-image-83249\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-155.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-155-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-155-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Fastenal (FAST) broke out and rallied to all-time highs before a 3-day pullback closed the stock for a loss on the week.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Abercrombie &amp; Fitch (ANF)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Abercrombie &amp; Fitch is a specialty apparel retailer operating brands including Abercrombie and Hollister.<br><strong>Technical status<\/strong>: Abercrombie &amp; Fitch (ANF) stopped just short of filling its post-earnings gap down from January. ANF is positioned for a test of 20DMA support.<br><strong>Trade commentary<\/strong>: ANF is also working out as I had hoped. Back in late July, <a href=\"https:\/\/drduru.com\/onetwentytwo\/2026\/07\/26\/tech-cracks-under-pressure-yet-market-breadth-hangs-on-the-market-breadth\/\">I traded off of 200DMA support<\/a>. However, the four straight days of selling last week greatly weakened my conviction in holding shares, especially with earnings around the corner on August 26. I next need to see the stock hold uptrending 20DMA support.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-156.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-156.png\" alt=\"\" class=\"wp-image-83250\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-156.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-156-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-156-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Abercrombie &amp; Fitch (ANF) stopped just short of filling its post-earnings gap down from January. ANF is positioned for a test of 20DMA support.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>SoundThinking (SSTI)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: SoundThinking provides AI- and data-driven public-safety technology for law enforcement, civic leaders and security organizations.<br><strong>Technical status<\/strong>: SoundThinking (SSTI) ended a promising 200DMA breakout with a 25.0% post-earnings crash and tested its low for the year. <br><strong>Trade commentary<\/strong>: SSTI was my big disappointment of the week. In early July, <a href=\"https:\/\/drduru.com\/onetwentytwo\/2026\/07\/04\/stock-markets-soccer-moves-pass-rotate-advance-the-market-breadth\/\">SSTI looked like it could hold a bullish breakout above 200DMA resistance<\/a>. I accumulated two tranches of shares ahead of earnings. Now I am looking to exit the position and take the loss. SSTI once again looks like a broken stock.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/seekingalpha.com\/news\/4632988-soundthinking-outlines-99m-100m-2026-revenue-plan-while-targeting-8-percentminus-9-percent\">The company lowered revenue and margin guidance for the year<\/a> and cited sales execution issues. An important contract in Chicago still hangs in the balance.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-157.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-157.png\" alt=\"\" class=\"wp-image-83251\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-157.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-157-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-157-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>SoundThinking (SSTI) ended a promising 200DMA breakout with a 25.0% post-earnings crash and tested its low for the year. <\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Copart, Inc (CPRT)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Copart operates online vehicle-auction and remarketing platforms used primarily for salvage, insurance and wholesale vehicles.<br><strong>Technical status<\/strong>: Copart, Inc (CPRT) confirmed a 50DMA breakout on high volume in a move that looks like a bottoming pattern.<br><strong>Trade commentary<\/strong>: CPRT dropped onto my radar after I noticed briefing.com reported high options trading volume. Traders were loading up on Dec 18 &#8217;26 $27.50 puts. Given these puts are so far out of the money, the interest could be in hedging. I bought one put in case there is a big move down coming, and I bought a Sep $32.50 call with the expectation that the stock is bottoming and setting up for significant continuation to at least 200DMA resistance. Note that Friday&#8217;s 7.6% surge above 50DMA support looks like confirming follow-through to the stock&#8217;s 6.6% surge on July 27. As I like to say in these situations, &#8220;something is up!&#8221; I could not find any news to explain either move.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-158.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-158.png\" alt=\"\" class=\"wp-image-83252\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-158.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-158-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-158-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Copart, Inc (CPRT) confirmed a 50DMA breakout on high volume in a move that looks like a bottoming pattern.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Accenture (ACN)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Accenture is a global professional-services company providing consulting, technology, digital transformation and managed services.<br><strong>Technical status<\/strong>: Accenture plc (ACN) continued its recovery after a 50DMA breakout finished reversing losses from June&#8217;s post-earnings crash.<br><strong>Trade commentary<\/strong>: ACN never quite tested 50DMA support <a href=\"https:\/\/drduru.com\/onetwentytwo\/2026\/08\/02\/market-absorbs-an-ai-crash-yet-resolves-nothing-the-market-breadth\/\">as I had hoped<\/a>. On August 4, I went ahead and bought shares. Assuming the stock is still in the middle of an ongoing recovery, a test of 200DMA resistance is the next critical test for ACN.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-159.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-159.png\" alt=\"\" class=\"wp-image-83254\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-159.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-159-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-159-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Accenture plc (ACN) continued its recovery after a 50DMA breakout finished reversing losses from June&#8217;s post-earnings crash.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>First Solar (FSLR)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: First Solar manufactures thin-film photovoltaic solar modules and is a major U.S.-headquartered solar technology producer.<br><strong>Technical status<\/strong>: First Solar (FSLR) found support at its 20DMA after quickly fading from initial gains on news of supportive tariffs.<br><strong>Trade commentary<\/strong>: FSLR continues to get tossed around from one technical setup to the next. News about tariffs created a bullish, albeit overextended, breakout above 50DMA resistance. A fade from the intraday high triggered near-nonstop selling until FSLR tested 20DMA support. I have decided to just hold the stock for the foreseeable future.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-160.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-160.png\" alt=\"\" class=\"wp-image-83256\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-160.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-160-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-160-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>First Solar (FSLR) found support at its 20DMA after quickly fading from initial gains on news of supportive tariffs.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Hormel Foods (HRL)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Description<\/strong>: Hormel Foods produces and markets branded food and protein products across retail, foodservice and international markets.<br><strong>Technical status<\/strong>: Hormel Foods (HRL) confirmed a 50DMA breakdown and now looks topped out.<br><strong>Trade commentary<\/strong>: HRL peaked in late June <a href=\"https:\/\/drduru.com\/onetwentytwo\/2026\/06\/28\/surprising-rotation-into-bullish-divergence-the-market-breadth\/\">when I noted the bullish breakout<\/a> as part of a rotation away from tech and AI-related stocks in particular. I acknowledged at the time that the stock was not likely going to start a new bullish run. Sure enough, HRL already looks topped out with a confirming 50DMA breakdown. I am still holding my position as a diversified holding with a supportive 4.77% dividend yield.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-161.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1525\" height=\"921\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-161.png\" alt=\"\" class=\"wp-image-83257\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-161.png 1525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-161-768x464.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2023\/07\/image-161-1320x797.png 1320w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/a><figcaption class=\"wp-element-caption\"><strong><em>Hormel Foods (HRL) confirmed a 50DMA breakdown and now looks topped out.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n<h2 id=\"footnotes\" class=\"wp-block-heading\"><strong>Footnotes<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/drduru.com\/onetwentytwo\/subscribe-free\/\" target=\"_blank\" rel=\"noreferrer noopener\">Subscribe for free<\/a> to get email notifications of future posts!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Above the 50&#8221; (AT50) uses the percentage of stocks trading above their respective 50-day moving averages (DMAs) to measure breadth in the stock market. Breadth defines the distribution of participation in a rally or sell-off. As a result, AT50 identifies extremes in market sentiment that are likely to reverse. Above the 50 is my alternative name for &#8220;MMFI&#8221; which is a symbol TradingView.com and other chart vendors use for this breadth indicator. Learn more about AT50 on my <a href=\"https:\/\/drduru.com\/onetwentytwo\/about\/t2108-resource-page\/\">Market Breadth Resource Page<\/a>. AT200, or MMTH, measures the percentage of stocks trading above their respective 200DMAs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Active AT50 (MMFI) periods<\/strong>: Day #267 over 20%, Day #94 over 30%, Day #90 over 40%, Day #45 over 50%, Day #3 over 60% (overperiod), Day #240 under 70% (underperiod)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Source for charts unless otherwise noted: <a href=\"https:\/\/www.tradingview.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>TradingView.com<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Full disclosure:<\/strong> long FSLR, long ANF, long HRL, long ACN, long FAST, long FRSH, long SSTI, long WDAY, long CPRT call and put, long SMH put spread<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>FOLLOW Dr. Duru&#8217;s commentary on financial markets via <a href=\"https:\/\/stocktwits.com\/DrDuru\" target=\"_blank\" rel=\"noreferrer noopener\">StockTwits<\/a>, <a href=\"https:\/\/bsky.app\/profile\/drduru.bsky.social\" target=\"_blank\" rel=\"noreferrer noopener\">BlueSky<\/a>, and even <a href=\"https:\/\/www.instagram.com\/ahan.analytics\/\" target=\"_blank\" rel=\"noreferrer noopener\">Instagram<\/a>!<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">*Charting notes: Stock prices are not adjusted for dividends. Candlestick charts use hollow bodies: open candles indicate a close higher than the open, filled candles indicate an open higher than the close.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">* Blog notes: I use ChatGPT to help with editing and news discovery.<\/p>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"From AI to Small Caps: How Market Breadth Broke Out - The Market Breadth #stockmarket\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/xSsQECViFZ8?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Market Breadth Summary: Breakout The Stock Market Summary The AI crash from July 29th feels like a distant memory. The subsequent breakout to all-time highs quickly erased the sting and returned the market to a rally that knows no obstacles. Now, market breadth has broken out and further confirmed the market&#8217;s underlying bullishness. Various &#8230; <a title=\"From AI to Small Caps: How Market Breadth Broke Out\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2026\/08\/16\/from-ai-to-small-caps-how-market-breadth-broke-out\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":83264,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[393,3252,584,456,1303,483,482,1862,1054,220,219,43,32,512,338,796,1311,511,62,982,920],"tags":[412,2592,1715,2673,4089,2593,4088,2832,4036,4035,2201,3743,3740,215,214,3731,1354,2696,2695,2218,909,2563,1669,413,2825,2388,1809,1863,65,2077,3230,362,1901,2992,1334],"class_list":["post-83296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analyst-coverage","category-artificial-intelligence","category-bollinger-band","category-bonds-2","category-bottom","category-breakdown","category-breakout","category-business-services","category-dining","category-earnings","category-high-tech","category-industrial-sector","category-options","category-resistance","category-retail","category-semiconductors","category-software","category-support","category-technical-analysis","category-trading-range","category-uptrend","tag-amat","tag-anet","tag-anf","tag-applied-materials","tag-aramark","tag-arista-networks-inc","tag-armk","tag-at50","tag-cbrs","tag-cerebras-systems-inc","tag-compq","tag-coreweave-inc","tag-crwv","tag-fast","tag-fastenal","tag-freshworks","tag-frsh","tag-igv","tag-ishares-expanded-tech-software-sector-etf","tag-ishares-russell-2000-etf","tag-iwm","tag-micron-technology","tag-mu","tag-nasdaq","tag-rapid7-inc","tag-red-robin-gourmet","tag-rpd","tag-rrgb","tag-sp-500","tag-smh","tag-soundthinking-inc","tag-spy","tag-ssti","tag-vaneck-semiconductor-etf","tag-wday"],"yoast_head":"<!-- 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