The Market Is Cracking
The S&P 500 closed just 9 points above its 200 DMA on Wednesday – a level it hasn’t traded below since mid-May 2025. The Magnificent 7 that have led this bull market since October 2022 are -8.73% YTD. The Equal Weight S&P (RSP) – which was picking up the slack from The Magnificent 7 in the early part of the year – is now rolling over and is up only 1.00% YTD. Less than 50% of stocks on the NYSE are trading above their 200 DMA.
After the close $500 billion Micron (MU) reported blowout earnings – but the stock is currently down in the after hours. The quarter couldn’t have been better with revenue of $23.86 billion and guidance for $33.5 billion in the current quarter. The stock may be exhausted after a parabolic move with all of the good news already priced in.
If MU can’t lift the market tomorrow, we may see the 200 DMA give way which will result in more selling from traders who consider that an important level.
