Episode 315: Washout or Warning?

In this episode of The Weekly Trend, David Zarling and Ian McMillan examine a market sending dramatically different signals above and below the surface. The S&P 500 remains near its highs while the Nasdaq, technology, and several areas of semiconductor leadership push toward or into new highs, but underneath the indexes, breadth has deteriorated sharply, with a large percentage of stocks already experiencing significant corrections. David and Ian break down whether this washout is setting the stage for a broadening Q4 rally or whether the weakness underneath the surface eventually pulls the major indexes lower. They discuss semiconductor leadership, AI and software, FANG and MAG stocks, struggling small and mid caps, rising CCC credit spreads, industrials and materials testing key technical levels, and the continued pressure from rising interest rates. They also check in on Treasury bonds, Bitcoin, Ethereum, the U.S. dollar, and several important relative-strength relationships as they look for clues about what comes next.