This week, while everyone else is focused on NVIDIA Corp. (NVDA), we will focus our attention on stocks with earnings that may get overlooked.

We’re watching a different group of stocks heading into earnings: Okta, Inc. (OKTA), AutoZone, Inc. (AZO), and Salesforce.com, Inc. (CRM). OKTA and AZO are making new highs as they head into their earnings call, while CRM is struggling.

Let’s break down the best risk/reward set-ups as we kick off the week.

Okta, Inc. (OKTA): Volatility Now, Potential Later

Okta’s stock price broke out to new 52-week highs a week before it posts its quarterly numbers. The cybersecurity company has experienced extreme volatility after posting earnings. In the last three quarters, the stock saw some pretty big swings—up 24.3%, up 5.4%, and down 17.6%. Its average price change post-earnings is +/-10.2%.

Technically, I love this setup. Let’s look at a five-year daily chart.

Shares have broken out ahead of earnings and have a lot to reverse. If we see weakness after results, there are several support areas where we would want to enter the stock with favorable risk/reward. The first strong support area is between $115/$118, an old resistance level that the stock just eclipsed. Old resistance could act as new support and provide an opportunity.

Outside of recent weakness due to “Liberation Day,” OKTA’s stock price has outperformed its peers and held key moving averages. Use levels just below the 50-day moving average around $110 as a near-term stop if $115 doesn’t hold.

To the upside, there is much to reverse and targets of $150 to $160 are attainable. If you’re a longer-term investor, the downtrend is broken and the bulls are back in charge.

AutoZone, Inc. (AZO): Riding Steady 

The retail leader in automotive replacement parts and accessories, AutoZone, Inc. (AZO), continues to rise, slowly and steadily, despite market volatility. The stock price is up 20% year-to-date, and we hope to add to those gains when they report on Tuesday morning.

One thing that has helped AZO’s continued growth is that the average car is roughly 12 years old. Consumers are investing more in maintenance and repairs instead of purchasing new vehicles. And with tariffs, buying a new car becomes more expensive, which benefits the car repair and maintenance business.

Let’s look at that long-term uptrend on a weekly chart going back five years.

The stock is a juggernaut. It has ridden the 50-week moving average consistently since Covid. It is in a beautiful uptrend and made new highs again just last week.

While the trend itself appears a tad extended above its averages, any trip back towards its recent uptrend line gives investors a strong entry point, with downside risk towards its 50-week moving average.

It’s also the best in class when compared to its top competitors, such as O’Reilly Automotive (ORLY) and Advanced Auto Parts (AAP). When looking at strong uptrends in a challenging environment, it’s best to find the best in class, and AZO continues to be just that. The trend continues to be the investor’s best friend.

Salesforce (CRM) Hits a Crossroads

A year ago, Salesforce (CRM) shocked investors with a revenue miss for the first time since 2006. This resulted in the stock price dropping 20% (red box in the chart below). It marked the stock’s low point, as it rallied as much as 74% over the next seven months. It now sits in the middle of a wide year-long range and is poised to move again.

Which way will it go? To examine that question, let’s look at the daily chart of CRM.

Technically, shares are at a crossroads. Shares dropped 37% from their December peak after forming a double top. It just broke its near-term downtrend from its post-Liberation Day lows, experiencing a 28% rally, but paused right at its 200-day moving average.

Momentum appears to be negative. The Moving Average Convergence/Divergence (MACD) has formed a bearish crossover, and shares failed to eclipse the 200-day. Shares are down -18% for 2025, underperforming the tech sector and the S&P 500. CRM sold off late Friday, hitting its 50-day moving average, on news that it’s in talks to acquire Informatica.

If you’re thinking of buying CRM, you may want to hold your horses. Watch the 50-day moving average around $270 to see if it can hold. On strength, look for confirmation and a close above the $295 level for an all clear that momentum has finally shifted in favor of the bulls.

Final Thoughts

OKTA, AZO, and CRM are thoughtful plays based on technical trends and real-world fundamentals. OKTA and AZO could have favorable risk/reward setups. As for CRM, add it to your ChartLists and monitor it regularly.

On Wednesday, only 4% of the S&P 500’s holdings logged gains — a pretty rare occurrence. Since the start of 2024, this has only happened three other times:

• August 5, 2024: The last day of the summer correction
• December 18, 2024: The Fed’s hawkish cut
• April 4, 2025: Tariffs

Let’s recall that major trading lows were etched last August, and again just a few weeks ago in early April. The S&P 500 ($SPX) dropped 10% and 21%, respectively, from its peak to trough both times, with the lows being marked by emphatic capitulation events (April 7 was the real pivot low). The market’s rubber band violently snapped back in the ensuing weeks, both times.

FIGURE 1. PAST LOWS IN THE S&P 500 INDEX. Note the rebounds following the August 5, December 18, and April 4 drops.With the SPX now having gained 20% from the April low, the setup is more like mid-December 2024. The index had just gained 19% from early August through early December and was hovering near 6,100. The FOMC’s actions put a major dent in the calm uptrend.

The S&P 500 didn’t completely crumble after that, spending the next 10 weeks backing and filling. But the market’s character changed, and the cracks eventually gave way to the waterfall decline.

So, what does that tell us about this moment? There’s a clear risk given the one-sided advance the last few weeks, but, with bullish patterns still in play and the $SPX having built up a big cushion, it can afford to back and fill again now. It’s the first gut punch in four weeks, and the market must prove it can absorb it.

Short-Term View of the S&P 500

The drawdown measured from this Monday’s high now stands at -2.4% — most of which happened on Wednesday. Given how small the moves have been over the last few weeks, Wednesday’s big decline hit the 14-period relative strength index (RSI) on the two-hour chart very hard. It’s now at 41, which is very close to the 30-oversold threshold.

Again, we’ve seen the short-term indicator fall to oversold territory several times, even during the market’s upswing from August through December. Seeing that happen again this time wouldn’t be a surprise. If it happens, it will be important to see the ensuing bounce pull the SPX back to overbought territory relatively soon. Remember, we went nearly four months between overbought readings from late January through mid-May.

FIGURE 2. TWO-HOUR CHART OF THE S&P 500 WITH RSI.

S&P 500 Patterns

Despite the sell-off, there was no change in the patterns at work. The two bullish patterns remain in play, with targets of 6,125 and 6,555, respectively. The S&P 500 started Thursday, at about 2.5% above the last breakout zone (5,695).

FIGURE 3. DAILY CHART OF THE S&P 500 WITH BULLISH PATTERNS. Here you see the pattern with a 6,125 target.

FIGURE 4. DAILY CHART OF S&P 500 WITH 6,555 PRICE TARGET.

Monitor the VIX

Not surprisingly, the Cboe Volatility Index ($VIX) gained 15% on Wednesday in response to the market’s sell-off. It remains close to 20, but continues to log higher lows, which has been the trend since late 2024. Indeed, it’s way off spike highs from April, but it’s a trend worth watching.

Let’s recall that the VIX never truly capitulated in 2022, but its trend of higher lows coincided with the equity market’s downtrend. When the SPX logged a true low in October 2022, lower lows in the VIX became evident. This lasted through this past summer.

If the snapback in the SPX turns into a longer, new uptrend, the VIX’s uptrend will morph into a downtrend again.

FIGURE 5. WEEKLY CHART OF THE CBOE VOLATILITY INDEX ($VIX).

Bonds Display Bullish Patterns

The bullish pattern in the weekly 30-Year Treasury yields and 10-Year Treasury yields is crystal clear. An acceleration through the 2023 highs after Wednesday would have an obvious negative effect on stocks.

As discussed before, the equity market has shown it can advance with higher rates, as long as said rates go higher gradually. The intermittent up-moves in rates have been capped for the last two years as well. Thus, stocks have been able to withstand it. That wasn’t the case from January to September 2022, and that’s the potential concern.

FIGURE 6. WEEKLY CHART OF THE 30-YEAR US TRASURY YIELD INDEX.

FIGURE 7. WEEKLY CHART OF THE 10-YEAR US TREASURY YIELD INDEX.

Bitcoin Holding Strong

So far, Bitcoin has maintained noticeable relative strength even as stocks got hit hard on Wednesday. Simply put, continuing to hold above this breakout zone would keep the new measured move target of 142k in play.

FIGURE 8. WEEKLY CHART OF $BTCUSD WITH ITS MEASURED MOVE TARGET.

From another perspective, this move can also be viewed as the fourth wedge breakout since 2023. The prior three times, BTC’s 14-week RSI stayed very overbought for weeks before slowing down. The 14-week RSI is just approaching overbought levels, which suggests it has further to go.

FIGURE 9. WEEKLY CHART OF $BTCUSD WITH WEDGE BREAKOUTS AND RSI.

In this video, Joe shares how to use MACD and ADX indicators to analyze stock pullbacks, focusing on the good while avoiding the weak setups. He explains how these indicators can complement one another. Joe then shows the Summary Page in ACP and how he uses it on a regular basis to look at different markets, including the SPX, COMP, S&P 600, 10-Year Rates, Copper, Gas, and a few Country Funds. Finally, he goes through the symbol requests that came through this week, including CRSP, VC, and more.

The video premiered on May 21, 2025. Click this link to watch on Joe’s dedicated page.

Archived videos from Joe are available at this link. Send symbol requests to stocktalk@stockcharts.com; you can also submit a request in the comments section below the video on YouTube. Symbol Requests can be sent in throughout the week prior to the next show.

Retail traders and investors often don’t get the credit they deserve. But in April, they showed they’ve got serious market smarts. 

While headlines screamed about a tanking stock market — remember, post-Liberation Day— retail investors waited patiently. And when the time felt right, they jumped in, adding $40 billion to the stock market during the month. Just this past Monday, retail investors poured another $5.4 billion in by day’s end. That was more than a third of the day’s trading volume!

If this keeps up, May could beat April in terms of total inflows. 

Lessons From the Past

Many of you probably remember the dot-com boom and the painful bust that followed. A lot of retail traders jumped in thinking they were buying the dip. Unfortunately, the market had other plans. Many retail traders got wiped out because they ended up buying at the peak rather than the dip. 

This is the risk “buy the dip” buyers face. Sometimes it works. Sometimes it doesn’t. So, how do you protect your portfolio value, especially now that you’re managing some of your investments?

Start With a Simple Daily Routine

Taking control of your finances doesn’t mean you need to stare at a screen all day. But checking in on the market regularly can go a long way. Even a quick peek at the Market Summary page at the end of each day (or once a week) can help you stay on track.

You’ll get a snapshot of how the major indexes are performing, what their daily or weekly streaks are, and if they are above specific moving averages. Here’s a little snippet of the page. There’s a lot more to discover on the page.

An Example: Keeping Tabs on NVIDIA (NVDA)

Let’s say you bought shares of NVIDIA Corp. (NVDA) after it dipped in early April. Despite how well the stock performed in 2024, you can’t just “set it and forget it.” 

You will want to monitor how the S&P 500 ($SPX), Nasdaq ($COMPQ), and Nasdaq 100 ($NDX) are performing since NVDA is a heavily weighted stock in these indexes. 

Here’s what you can do:

• Check the trend. Are the indexes trending higher? Are they above key moving averages? 
• Click on the index name. Start with the daily chart and look for any red flags like a break below the 200-day simple moving average (SMA).
• Watch the up or down streaks. If a winning streak turns into a losing one, it’s worth noting. 

Digging Deeper With Internals and Sector Insights

The Market Summary page also gives you access to market internals that can help you determine the health of the indexes. These include the Advancing/Declining Issues, Bullish Percent Index (BPI), and New Highs/New Lows, among many others. 

Since your focus is semiconductor stocks, you would closely watch the related indexes. For BPI, you’d go one step further and monitor the Technology Sector BPI ($BPINFO).

The US Industries panel displays the performance of the Semiconductors. 

What’s Up With Semis? Let’s Look at XSD

At this point, it’s worth analyzing the chart of the SPDR S&P Semiconductor ETF (XSD), the ETF included in the Market Summary page. The six-month daily chart below shows that XSD is now trading below its 200-day SMA, which is a reason for concern. 

FIGURE 1. DAILY CHART OF XSD. The ETF fell below its 200-day SMA on Wednesday and is underperforming SPY. Chart source: StockCharts.com. For educational purposes.

Note that XSD is holding on to the support of the May 12 low, which is when the price gapped up. Gaps often get filled, so a fall below where XSD closed on Wednesday could take the ETF down to the $210 level. 

In addition, the ETF’s performance relative to the S&P 500 ETF (SPY) over the last six months is at -3.96%. This indicates that semiconductors are trying hard to re-establish their pre-2025 leadership position. If XSD continues to underperform SPY, it would be more reason to be concerned.

Check In on NVDA Again

Seeing this chart should prompt you to pull up the chart of NVDA. Is the stock following the same pattern as the ETF? 

Looking at the six-month daily chart of NVDA, it’s still above its 200-day SMA, unlike XSD. However, NVDA’s stock price is flirting with the support of its May 14 low. A breach of the low could take NVDA’s stock price to its 200-day SMA or lower. This wouldn’t be good for the overall equity market because NVDA is such a heavyweight in the U.S. large-cap indexes. 

FIGURE 2. DAILY CHART OF NVDA STOCK. Wednesday’s price action suggests the possibility of a pullback. If price falls below the May 14 low, the next stop could be the 200-day SMA. Chart source: StockCharts.com. For educational purposes.

Before entering your position, you should have identified your profit target and exit point based on your risk tolerance level. Remember, when managing your investments, discipline is key.  

Keep It Simple

The Market Summary page is a tool that can help you stay ahead of the stock market without overwhelming you. 

Here is one way to use the Market Summary page: 

• You don’t need to be glued to the screen. Just make checking in a part of your routine.
• Know what matters. Focus on the key indexes, which direction they are trending, and the sectors you’re invested in. 
• Engage with the market. The more you understand the price action of the market, the more empowered you become.

There are many more ways to use the Market Summary page, and we’ll be sharing more in upcoming articles. 

Bottom Line

Whether you’re hands-on with your investments, semi-retired, or retired, staying informed can help you feel confident and in control. 

So go on, check out the Market Summary page, explore the charts, and stick to your trading plan. 

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

If you regularly follow the SCTR Reports (StockCharts Technical Rank), you’ll notice that some top-ranked stocks aren’t just individual standouts but groupings that call attention to particular sectors, industries, or subgroups within the two.

That’s exactly what happened Tuesday morning. A couple of high-ranking stocks pointed to a growing trend in the thematic subsector of quantum computing.

Quantum Computing Stocks Light Up the SCTR Reports

Occupying the top ranks of the Mid Cap SCTR Top 10 list are quantum computing stocks D-Wave Quantum Inc. (QBTS) and Rigetti Computing, Inc. (RGTI).

FIGURE 1. SCTR REPORTS – MID CAP TOP 10. QBTS and RGTI, occupying the top of the list, signal strength in the quantum computing subsector.

The quantum computing subsector made headlines Tuesday morning, with QBTS leading the charge. 

QBTS Leads on Breakout News and Bullish Technical Scans

QBTS shares surged after the company unveiled Advantage2, its most advanced quantum system to date. A quick look at QBTS’s Symbol Summary showed the stock appearing across multiple bullish technical scans on Tuesday, including New 52-week Highs, P&F Double Top Breakout, and Runaway Gap Ups.

Other quantum names, including RGTI, also saw gains, highlighting growing momentum in the space. 

RGTI Gains Momentum with Unique Technical Setups

RGTI’s Symbol Summary profile revealed a different set of predefined scans, suggesting unique technical setups driving its price action. RGTI was triggered in the P&F Ascending Triple Top Breakout, Elder Bar Turned Blue, and P&F Double Top Breakout predefined scans on Tuesday.

With quantum computing stocks like QBTS and RGTI surging and showing unusually strong technical strength, assessing their investment potential requires more than a few headlines. Comparative strength, broader performance of sectors to which they belong, and the underlying factors shaping their price action are some other factors to consider.

FIGURE 2. PERFCHARTS OF QBTS, RGTI, XLK, AND QQQ. At these levels of outperformance, it becomes difficult to separate justified valuations from pure FOMO. As the PerfCharts comparison shows, RTGI and QBTS stocks are outperforming their sector and broader tech-heavy index. 

Technical Breakout: What to Watch with QBTS’ Next Move

From a technical perspective, does either stock present a favorable structure for a market entry? To evaluate this, let’s start with a daily chart of QBTS.

FIGURE 3. DAILY CHART OF QBTS. An impressive parabolic run, support on the downside is relatively clear.

QBTS broke out above its four-month trading range, shooting up to an all-time high of $17.50 on Tuesday’s session, sending the Relative Strength Index (RSI) deep into overbought territory. The Price Channels identify potential areas of support based on previous swing highs and lows.

If QBTS is overbought because its valuations are too high, then a pullback is likely to follow. Whether you should buy the dip depends on your fundamental thesis, but technically, if you decide to enter a position, consider this:

• QBTS is likely to find support at the top of its previous range, highlighted in green.
• If it falls below that, there’s another support range, shaded yellow, that marks another set of minor swing highs in the middle of the previous trading range.
• Below that, however, is support at a low range, shaded red, where the stock has reversed several times over the last few months. 

However, if QBTS drops into the zone between the yellow and red support levels, it could signal a meaningful loss of momentum and growing weakness in the stock’s trend.

That’s why volume becomes especially important here. Note how volume has risen with each successive surge—an encouraging sign of accumulation that somehow dropped at each price peak. If QBTS holds above the top of its previous range, watch for continued volume support; strong follow-through should be backed by equally strong participation.

RGTI Chart Shows Upside Potential—But With Caution

Now let’s look at the second one up on the SCTR Top 10 list. Here’s a daily chart of RGTI.

FIGURE 4. DAILY CHART OF RGTI. The stock is moving steadily upward, but unlike QBTS, there’s no outstanding catalyst to trigger an immediate and outsize move.

Following a fourth bounce at the $7 support range, RGTI broke above resistance, almost hesitantly, at $11. The Volume-by-Price overlay on the left side of the chart shows heavy trading activity in this range, suggesting it could become a strong support level now that resistance has been broken. The ZigZag line further clarifies the support and resistance levels, helping to visualize the stock’s overall trend structure.

The On Balance Volume (OBV) indicator in the bottom panel reflects steady buying pressure. At the same time, the RSI, currently at 61 and rising, suggests the stock still has room to climb before entering overbought territory. 

If RGTI maintains its upward trajectory, the next meaningful resistance level ahead will be at $16, marking its January high. However, whether it gets there may depend less on chart patterns and more on underlying catalysts.

In other words, is RGTI riding the wave of bullish sentiment in quantum computing stocks, or does it have a meaningful fundamental catalyst driving its move higher? On that note, what about QBTS?

Wall Street Weigh In: Real Catalysts or Quantum Hype?

Be careful. Analysts are cautiously optimistic about both stocks, pointing to real catalysts like RGTI’s government partnerships and QBTS’s Advantage2 launch. However, some on Wall Street caution that recent gains may be driven more by hype than fundamentals, with commercial adoption still a long way off.

Action Steps

• Monitor the support levels. For QBTS, watch the green zone (prior range top) for dip-buying potential; deeper moves into yellow or red zones may signal weakening momentum.
• Track volume behavior. Continued surges should be matched with strong volume to confirm trend strength.
• Stay grounded. If you’re trading, closely follow the technicals. If you’re investing, make sure your thesis includes realistic expectations on commercialization timelines.

At the Close

Quantum computing stocks like QBTS and RGTI are showing impressive momentum, backed by technical strength and growing investor interest. But while the setups look promising, remember to stay disciplined. Monitor support levels, watch volume closely, and don’t lose sight of the long runway ahead for true commercial adoption.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your personal and financial situation, or without consulting a financial professional.

In this video, Frank dives into some of his favorite features on StockCharts.com. He then dissects the S&P 500 and Bitcoin price action, before exploring the the XLK Technology ETF’s explosive move off the lows. He also highlights a few recent trade ideas and setups worth watching. Get trade ideas and chart setups worth watching in today’s technical review.

This video originally premiered on May 20, 2025.

You can view previously recorded videos from Frank and other industry experts at this link.

Earnings season continues with names like Home Depot, Palo Alto Networks, and BJ’s Wholesale flashing signals that investors shouldn’t ignore. Whether you’re following home improvement trends, cybersecurity growth, or retail resilience, these stocks offer insight into where the stock market could be headed next.

Let’s break down the charts, decode the earnings, and explore the setups that could shape your next move.

DIY Boom Fizzling: What Home Depot’s Earnings Might Tell Us

Home Depot, Inc. (HD) reports earnings on Tuesday, and its results will give a peek at how the DIY home retail investor is changing their spending habits. HD’s stock price has struggled and is down about 2.5% year-to-date, but well off its lows. Like most stocks reporting earnings this quarter, investors will listen for any revisions to HD’s guidance, especially considering ongoing economic challenges such as high interest rates and their impact on consumer spending.

Let’s look at the daily chart of HD.

FIGURE 1. DAILY CHART OF HOME DEPOT, INC. STOCK PRICE. The $377 area and 200-day moving average act as the middle road for a potential setup.Chart source: StockCharts.com. For educational purposes.

The chart of HD stock displayed a head-and-shoulders top last quarter, which we warned about. Sadly, that pattern broke to the downside and hit its target some $50 lower. Since bottoming, shares have retreated to where they were before their last report.

The set-up is a coin flip, with the $377 area and 200-day simple moving average (SMA) acting as the middle road. Stock prices are known to gap and trend for roughly two weeks in the gap’s direction before reversing direction.

If HD’s stock price dips, there are clear support and potential entry points. Look for the rising 50-day SMA to hold at around the $360 level. A dip and hold here would be good for the longer-term turnaround story and the bullish case. If there’s a break, wait for a deeper drop to enter HD. A gap above the 200-day SMA should lead to near-term smooth sailing and enable a trader to use the average as a great stop loss guide.

Palo Alto Networks (PANW): Can It Keep Climbing?

It’s one of the biggest names in cybersecurity, and it’s on the verge of getting back to its all-time highs.

Fundamentally, Palo Alto Networks’ annual recurring revenue (ARR) continues to be the significant growth driver. In Q1, ARR grew 40% year-over-year to $4.5 billion. For Q2 2025, the company projected ARR between $4.70 billion and $4.75 billion. Investors will be keen to see if the company meets or exceeds this guidance.

Technically, we wanted to look at this chart on a longer time frame. The five-year weekly chart of PANW below shows the trend is stalling under a double top at the $205 level. There are some good signs that it may be able to get back on track and push to new highs.

FIGURE 2. WEEKLY CHART OF PALO ALTO NETWORKS STOCK PRICE. Monitor the rising 50-week SMA. Will it hold that level after earnings? The MACD is displaying a bullish crossover, which signals a favorable risk/reward setup.Chart source: StockCharts.com. For educational purposes.

The key level to watch for the bulls is the rising 50-week (blue line) SMA. Shares had consistently trended above this level since initially surpassing it in early 2023. Price action briefly broke below that average, but recaptured it two weeks ago. Now it must hold that level, so watch $178.50 for support on any weakness.

The technical indicator that caught my eye was the moving average convergence/divergence (MACD), which just experienced a bullish crossover. This has a history of leading to great risk/reward setups in a stock. The chart highlights the current crossover and the last two notable ones in green to demonstrate the indicator’s past performance.

Any upside movement should take PANW’s stock price back to the $205 level and a re-test of all-time highs.

BJ’s Wholesale (BJ): Quietly Outperforming

BJ’s has quietly enjoyed a strong 2025, despite tariff talk and negative consumer sentiment. Shares of BJ are up 29% year-to-date and over 44% over the last 52 weeks. While its $14 billion market cap pales in comparison to the $450 billion size of its biggest wholesale competitor in Costco (COST), BJ continues to exceed expectations and thrive.

BJ’s stock price has rallied after four of the last five earnings reports, with an average gain of 8%, including a 12% rally last quarter. Coming into the results, the stock price is starting to rally back towards all-time highs. Maybe this will be the catalyst to break out even higher.

Technically, there is much overhead resistance at the $120 level (see daily chart of BJ below). A break above there should lead to another $10–$15 on the upside. 

FIGURE 3. DAILY CHART OF BJ STOCK. Note the overhead resistance at around the $120 level. On the downside, there’s support at $108 and the rising 100-day SMA.Chart source: StockCharts.com. For educational purposes only.

Weakness has given investors opportunities as well. There is clear support at the $108 level and the rising 100-day SMA (in green). The long-term trend has been strong and, barring a major change in the fiscal direction of BJ’s, the trends should continue to be your friend and give solid risk/reward entry points. 

Final Thoughts

Charts aren’t just squiggly lines. They’re tools to help you make smarter decisions with your hard-earned money. 

Whether you’re eyeing a potential rebound in Home Depot, the strength of cybersecurity, or a quiet winner like BJ’s, remember: technical patterns can give you an edge, but so can patience and perspective.

Learn how to analyze stock price gaps with Dave! In this video, Dave discusses the different types of price gaps, why all price gaps are not the same, and how you can use the StockCharts platform to identify key levels and signals to follow on charts where price gaps occur. Charts discussed include the S&P 500, First Solar (FSLR), Microsoft (MSFT), and more!

This video originally premiered on May 19, 2025. Watch on StockCharts’ dedicated David Keller page!

Previously recorded videos from Dave are available at this link.

Sector Rotation Shakeup: Industrials Take the Lead

Another week of significant movement in the sector landscape has reshaped the playing field. The Relative Rotation Graph (RRG) paints a picture of shifting dynamics, with some surprising developments in sector leadership. Let’s dive into the details and see what’s happening under the hood.

1. (6) Industrials – (XLI)*
2. (4) Financials – (XLF)*
3. (1) Utilities – (XLU)*
4. (2) Communication Services – (XLC)*
5. (3) Consumer Staples – (XLP)*
6. (8) Technology – (XLK)*
7. (5) Real-Estate – (XLRE)*
8. (9) Materials – (XLB)*
9. (11) Energy – (XLE)*
10. (10) Consumer Discretionary – (XLY)
11. (7) Healthcare – (XLV)*

Weekly RRG

On the weekly RRG, Utilities and Consumer Staples maintain their high positions on the RS-Ratio scale. However, there are signs of waning momentum. Staples has rolled over within the leading quadrant and is now showing a negative heading. Utilities, while still strong, are losing some of their relative momentum.

Financials and Communication Services are hanging on in the weakening quadrant, but their tails are relatively short — indicating potential for a quick turnaround.

The show’s star, Industrials, has made a beeline for the leading quadrant, climbing on the RS-Ratio scale while maintaining a positive RRG heading.

Daily RRG

Switching to the daily RRG, we get a more granular view. Utilities, Staples, and Financials are found in the lagging quadrant, but Staples and Utilities are showing signs of life, turning back up towards the improving quadrant.

Financials, meanwhile, are hugging the benchmark.

The daily chart confirms Industrials’ strength, mirroring its weekly performance.

Communication Services, however, is showing some worrying signs — it’s dropped into the weakening quadrant on the daily RRG, confirming its vulnerable position on the weekly chart.

Industrials

XLI flexes its muscles, pushing against overhead resistance around the $144 mark.

A break above this level could trigger a further acceleration in price.

The relative strength line has already broken out of its consolidation pattern, propelling both RRG lines above 100 and driving the XLI tail deeper into the leading quadrant.

Financials

The financial sector continues its upward trajectory, trading above its previous high and closing in on the all-time high of around $53.

Like Industrials, a break above this resistance could spark a new leg up.

The RS line is moving sideways within its rising channel, causing the RRG lines to flatten—something to watch.

Utilities

XLU has finally broken through its overhead resistance, approaching its all-time high around $83.

After months of pushing against the $80 level, this breakout is a clear sign of strength.

The RS line is still grappling with its own resistance, but the RS-Ratio line continues its gradual ascent.

Communication Services

While XLC is moving higher on the price chart, its relative strength is lagging.

The sideways movement in the RS line is causing both RRG lines to move lower, with the RS-Momentum line already below 100.

This sector is rapidly approaching the lagging quadrant on the daily RRG—definitely one to watch for potential risks.

Consumer Staples

XLP is approaching the upper boundary of its trading range ($83-$85), where it is running into resistance. The inability to push higher while the market is moving up is causing relative strength to falter.

The recent strength has pushed both RRG lines well above 100, but the current loss of relative strength is now causing the RRG-Lines to roll over.

The tail is still comfortably within the leading quadrant, but this loss of momentum could signal a potential setback.

Portfolio Performance

The model portfolio’s defensive positioning has led to some underperformance relative to SPY, with the gap now just under 6%.

However, the model is sticking to its guns, maintaining a defensive stance with Staples and Utilities firmly in the top five.

It’s worth noting that Healthcare has now definitively dropped out of the top ranks. Nevertheless, with Staples and Utilities holding firm, and Technology and Consumer Discretionary still in the bottom half, the overall positioning remains cautious.

These are the periods when patience is key. We need to let the model do its work and wait for new, meaningful relative trends to emerge. It’s not always comfortable to endure underperformance, but it’s often necessary to capture longer-term outperformance.

#StayAlert, –Julius

Looking for breakout stocks and top market leaders? Follow along Mary Ellen shares stock breakouts, analyst upgrades, and sector leadership trends to help you trade strong stocks in today’s market.

In this week’s episode, Mary Ellen reveals the stocks leading the market higher and explains what’s fueling their strength. She highlights base breakouts, analyst upgrades, and leadership stocks gaining momentum. In addition, she screens for emerging breakout candidates you should have on your radar.

This video originally premiered May 16, 2025. You can watch it on our dedicated page for Mary Ellen’s videos.

New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.

If you’re looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.