As will be noted and discussed in further detail below in today’s feature article, many U.S. equity indices are trading at or near all-time chart highs, and some leadership dynamics from a sector perspective have shifted as indices have pushed higher. Among the notable shifts from an index-performance perspective, the Nasdaq Composite (NASD) and Nasdaq-100 (NDX) have both charged higher since the beginning of Q2, leading all indices with each up more than 10%. While the broader technology sector has been among the, if not the, biggest contributors to the Nasdaq indexes’ upside, two of its subsectors—semiconductors and computers—have been the primary culprits.

The subsector indices for semis (DWASEMI) and computers (DWACOMP) have rallied 23% and 13%, respectively, since the beginning of Q2 (3/31/ - 4/15). While that sounds fantastic, investors will remain selective, as some stocks have witnessed abrupt improvement and now reside in extended, overbought positions on their charts. Below are a few examples that have shown technical improvement this week; the additional two examples provide chart pictures and metrics to monitor for positions where exposure could be considered.

CoreWeave (CRWV) and Intel (INTC) provide the most notable examples of technical improvement, as shares have rallied into extended, overbought territory. Both stocks have improved to 5 technical-attribute–rated status since the beginning of Q2, with CRWV climbing from a 1 TA rating and INTC improving from a 3 TA rating. On both trend charts, all of April’s ascension has occurred within one column of Xs, with CRWV climbing more than 53% in Q2 and INTC gaining 47%. The rally places both charts in overbought territory (weekly OBOS > 70%), with INTC residing in extremely overbought territory (weekly OBOS > 100%). Given their extended positions, those monitoring CRWV and INTC would look for consolidation near current prices, along with a normalization of the 10-week trading band, before considering initial or additional exposure. Earnings for each stock are upcoming, with INTC reporting on 4/23 and CRWV reporting on 5/13.

Seagate Technology (STX) has gained more than 30% so far in Q2, rallying to a new all-time chart high this week. Though the 5 for 5’er pulled back during Wednesday’s (4/15) trading to $504, Thursday's (4/16) trading led to a reversal back into Xs, placing a higher bottom and locatlized support at $504. While not quite as overbought as the prior two examples, STX still maintains a weekly OBOS reading near 80%. Given the overbought posture and current chart formation, investors will look for the stock to consolidation at current chart levels along with a normalization of the 10-week trading band before considering. Beyond initial support at $504, prior resistance in the $450 area may be seen as support while additional can be found in the $400–$420 range. Earnings for Seagate are expected on 4/28.

While investors will monitor near-term action for STX to pull back to a more actionable range, Lam Research (LRCX) has already done so after rallying to a new all-time chart high at $272 during Wednesday’s (4/14) trading and then pulling back to prior resistance in the $250 range during Thursday’s (4/15) session. Another distinction between LRCX and other stocks that have rallied recently is that LRCX has maintained a 5 technical-attribute rating since May 2025, while others experienced technical deterioration to start 2026 and have only recently rebounded. Those who already own LRCX may consider the stock at current levels following the pullback, while those seeking to initiate exposure would look for a reversal back into a column of Xs near $268. Beyond current support in the $250 range, longer-term support can be found at $212 and $200. Earnings for LRCX are due to report on 4/22.

Analog Devices (ADI) has not seen the same level of ascension as the prior examples, gaining 9% since the beginning of Q2. However, similar to LRCX, the stock has maintained a high technical-attribute rating through much of the turbulence in Q1 2026. On the trend chart, the 4 for 5’er recorded a second buy signal during last week’s trading session before carrying to within a couple of boxes of its all-time chart high during this week’s action. ADI is actionable near highs, but also on a pullback to the $330–$340 range. Initial support lies at $312, with additional support at $304 and $296.

In yesterday’s trading, the S&P 500 (SPX) notched a new all-time high, its first since January 28th. Since hitting its 2026 low on March 30th, SPX has staged a blistering rally, gaining more than 10% from trough to peak and erasing a two-month decline in just over two weeks.

While the S&P has regained the high it reached in late January, the market landscape looks much different than it did then. First and foremost, international equities have overtaken domestic equities to claim the top spot in the DALI asset class rankings. The shift suggests international equities have meaningfully gained on domestic equities and our allocation to international equities should be larger than it was in January. Thus far, this has been borne out by performance as the iShares MSCI EAFE ETF (EFA) has outpaced SPX by roughly 5% year-to-date (through 4/15) and the iShares MSCI Emerging Markets ETF (EEM) leads SPX by more than 11%.

After giving an initial buy signal in March, the US Dollar Index (DX/Y) ran into resistance between $100 and $101 and fell to a sell signal in this week’s trading. The quick reversal is atypical of the dollar, which has trended well in recent years, often giving multiple consecutive signals in the same direction. But if this week’s sell signal is a sign that the dollar is going to resume the downtrend it has been in for the last year and change, it could be a continued tailwind for international equities.

Within domestic equities, the relative strength picture also looks significantly different than it did at the end of January when technology led the domestic equity sector rankings. Technology has been one of the primary drivers of SPX’s strength over the last few years. And though it remains in in overweight territory, technology’s relative strength has materially deteriorated. The magnificent seven contributed significantly to the recent rally – all but two members – (AAPL) and (TSLA) are up more than 10% since March 31. But four of the seven also trail the S&P 500 on a year-to-date basis. Meanwhile, the average technical attribute rating for technology stocks in the S&P 500 is roughly 2.6, below the acceptable 3.0 threshold.

Energy, which ranked in the bottom half of DALI in late January, now sits atop the rankings. However, energy’s leadership is inconsistent with the rally that’s taken place over the last two weeks. The spike in crude oil prices at the outset of the Iran conflict were a significant contributor to energy’s rise; but rising energy prices also contributed to weakness in the rest of the market on concerns it could lead to inflation and an economic slowdown. This month’s rally was spurred by the two-week ceasefire and a drop in crude oil prices. If the ceasefire leads to a longer-term peace agreement and crude supply recovers, it would be a major headwind for oil prices and by extension the energy sector, if it doesn’t it could drive weakness in the rest of the market. So, from that standpoint it’s not unreasonable to think that if growth sectors are to continue higher, it may be accompanied by energy losing relative strength. There have already been signs that energy could be weakening – the Energy Select Sector SPDR Fund (XLE) reversed down into Os on its market RS chart last week and its fund score has deteriorated noticeably over the last two weeks.

Energy has taken over leadership in the DALI domestic equity sector rankings and currently has a lead of almost 60 buy signals over the second-place industrials sector.

However, there have been early signs the sector is weakening. Further declines in crude prices could be a headwind for energy while also potentially benefitting growth sectors. 

All of this is to say that while the S&P may be in roughly the same position it was six weeks ago, the market today looks much different than it did then. International equities have moved into first in the asset class rankings and DX/Y’s recent chart action could support its continued leadership. Meanwhile, sector leadership in the domestic equity market may be in flux. If risk assets continue to rally, it seems likely that energy could trail the broader market but it is not yet clear if technology is ready to take up the mantle once again. With earnings season underway, that question may be answered in the next few weeks, so it will be important to keep a sharp eye on any potential shifts in relative strength.

Daily Option Ideas for April 16, 2026