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Tuesday’s US Equity market finish failed to close on an inspiring note, dropping late in the day to near lows of the session with ^SPX 0.34% finishing just above Tuesday’s opening print of 5605.87. However, this doesn’t do much damage to the near-term technical picture, and momentum based on gauges like MACD, remains positive and upward sloping. Wednesday should set the stage for a push back to new highs for the month, as AMD -0.10% ’s strong earnings report might help Semiconductor issues and Technology outperform on Wednesday. Overall, I expect that 5581, then the area at 5540-5566 are the two areas to watch for support in Wednesday’s trading. If my thinking is correct, a push back over Wednesday’s intra-day highs of 5649.58 should happen, which should drive ^SPX 0.34% back up to test and exceed 5700. President Trump’s comments that a “big announcement is approaching” and should be revealed before Monday likely serve to keep a bid in the market and help markets push back to new monthly highs ahead of the weekend.
S&P 500 Index
Following its breakout last month to the highest levels since 2013, GDX -1.43% , the VanEck Gold Miners ETF, showed a minor 10% consolidation in the last two weeks before starting to push up sharply again this week. I expect GDX -1.43% moves back to new highs and likely tests all-time highs from 2011 at $66.98 as Gold prices start to escalate back to new all-time highs. Given the choppiness in US stock indices at the moment, it’s right to favor Gold and Gold stocks (via GDX -1.43% ), which look very appealing as part of a balanced portfolio. While many commodities have fallen in recent months, precious metals remain pointed higher, and I expect Gold to rally to near $3750. Gold stocks also likely will participate, and the last two days of rally in GDX -1.43% are important and bullish for its structure, suggesting a move higher to test 2011 highs should be underway.
VanEck Gold Miners ETF
Many investors are wondering if Tuesday’s better-than-expected 1st Quarter revenue number of $7.4 billion (36% increase) makes AMD -0.10% attractive to consider technically, as the stock has rallied 25% from early April. Unfortunately, technically speaking, despite this rally, daily charts show us that AMD -0.10% has not broken its most recent downtrend from last October’s peaks, which intersect at $102. Based on Tuesday’s close of $98.62, the stock remains lower by 18% on the year. Furthermore, weekly and monthly MACD remain negatively sloped as AMD -0.10% remains down more than 55% from its peaks made last March, 2024. Overall, the ability to close back above $102 in the days ahead following Tuesday’s better-than-expected earnings report would signify the first real ability to surpass this downtrend, resulting in gains to challenge the peaks made last month near $115. Moreover, the ability to get over $115 would allow for the start of a rally up to $121.84 to test prior lows (now resistance) from last August. For now, technically speaking, it’s important to let the stock demonstrate that its downtrend is giving way to a new uptrend, vs. trying to pick lows based on concepts of this stock being “cheap”. At present, it still looks better to favor NVDA 0.15% , technically speaking, AMD -0.10% ’s closest rival in Artificial Intelligence processors, vs. thinking that it’s better to select the stock that’s fallen the most from its all-time highs.
Advanced Micro Devices Inc
