The S&P 500 has entered a Daily Cycle decline, while semiconductor leader SMH is showing more pronounced weakness. Both have formed Weekly swing highs and are testing important moving-average support. The developing deterioration raises questions about whether the broader market is entering a more significant correction.
Meanwhile, the Dollar is approaching a potential Daily Cycle decline. Dollar weakness could provide some relief for Gold and Bitcoin, although neither has confirmed a sustainable Daily Cycle reversal. Oil is also pulling back following its recent advance.
What matters now: Whether stocks stabilize near support or semiconductor weakness spreads into the broader market. A completed weekly break of support would strengthen the case for an Intermediate Cycle decline. For now, the developing signals warrant attention, but confirmation remains essential.
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