Below are highlights from the NDW Morning Update Video for the morning of 8/10/2026. Access the the video on the NDW Morning Update Video page. 

• U.S. equity and international equities were positive Friday (8/7). Most indices continue to maintain near recent rally highs on their charts achieved last week.
• Gold (GC/) and crude oil (CL/) were both positive Friday (8/7) with gold climbing above 4350 on its long-term 50 point per box chart and crude reversing back into a column of Xs on the default point and figure chart.
• Week-over-week, participation has improved with the average bullish percent reading for the NDW 40 sectors climbing from 40% to 47%, leading to a slight shift to the right of the distribution curve of the sectors. Technology sectors like semiconductors (^BPSEMI) and computers (^BPCOMP) were notable highlights, while steel (^BPSTEE) and aerospace (^BPAERO) seeing increases in stocks maintaining buy signals.
• Consumer Inflation (CPI) reports on Wednesday and will be closely watched by Fed officials for potential pathways interest rates.
• Earnings take a bit of a breather this week, but notable names reporting have support and resistance levels highlighted below.
  • Simon Property Group (SPG) – Reports 8/10 – SPG has been a 5 for 5’er since April this year and capped off July’s trading reaching an all-time chart high at $236. August’s trading has seen the stock pullback to the middle of the 10-week trading band with support at $216 close by. Prior resistance at $204 may be seen as additional support, while the bullish support line sits at $184.
  • Super Micro Computer (SMCI) – Reports 8/11 – SMCI fell to a 2 for 5’er after shifting into a negative trend in early July. The stock has rebounded from those near-term lows back above $30. From here, a move above $33 would count as a second buy signal and match the middle of the 10-week trading band. Note resistance at $36 and the bearish resistance line at $42. Initial support lies in the mid $20s, while additional can be found around the $20 level, the stock’s 2026 chart lows.
  • Cisco Systems (CSCO) – Reports 8/12 – CSCO has been a 5 for 5’er since February this year. After reaching highs at $130 in early June, the stock pulled back through much of July before seeing the chart return to a buy signal at $122 during last week’s trading. Initial support lies at $108, while the next levels of support lie in the mid $80s to low $90s.
  • Applied Materials (AMAT) – Reports 8/13 – AMAT fell to a 4 for 5’er in early July after seeing the market RS chart reverse down into Os. After pulling back to the mid $400s in mid-July, AMAT has rebounded to return to a buy signal at $544. From here, a move above $560 would count as a second buy signal. Note resistance in the $576 to $584 range. Initial support lies at $512 and $496, while the July chart low sits at $40.

We are saddened by the passing of Watson Wright, co-founder of Dorsey, Wright & Associates. Alongside Tom Dorsey, Watson helped build the foundation of the firm that would become today's Nasdaq Dorsey Wright.

While many knew Watson for his contributions to the business, those who had the privilege of knowing him personally will remember so much more. Watson loved golf and sports, and perhaps even more than playing them, he loved talking about them. Conversations with Watson were rarely brief, always engaging, and often filled with stories, insights, and plenty of laughter.

He had a booming voice, a larger-than-life presence, unmistakable laugh and a remarkable ability to make everyone feel welcome. Watson truly never met a stranger. Whether you were a longtime friend, a client, or someone he had just met, he took a genuine interest in your life and made you feel like you mattered. Add to that his quick wit and love of cracking jokes, and it is easy to understand why so many people were drawn to him.

The firm Watson helped create has grown tremendously over the years, but the relationships, character, and sense of community he valued remain an important part of our culture today. His impact extends well beyond the business itself and lives on through the countless colleagues, clients, and friends whose lives he touched.

We extend our deepest condolences to Watson's family and friends. He will be greatly missed, fondly remembered, and forever a part of the Dorsey Wright story.

Investors should be well aware of how quickly markets change, but the last couple weeks have been even faster than usual. Near the end of last month, the Technology Select Sector SPDR fund (XLK) was within 4% of moving into a bear market while semiconductors were faring even worse. The VanEck Semiconductor ETF (SMH) fell as much as 25% from its highs, triggering four consecutive sell signals. Weaknesses across the technology sector resulted in it losing the top spot in DALI, falling behind both industrials and healthcare.

However, the group remained an overweight area, maintaining its position among the top three in DALI. Since then, the group has rebounded, with technology putting together one of its strongest weeks in recent years. XLK rose 11.5% over five trading days (7/29 to 8/5), which was the best one-week span for technology since the market rallied off the Tariff Tantrum bottom last year. As a result, there have been several notable relative strength developments. Even more encouragingly, recent movement has been driven by the majority of names in the sector, not just the largest constituents. The Invesco S&P Equal Weight Technology ETF (RSPT), representing the average technology stock, is up double digits off of its recent lows. So far in 2026, RSPT is outperforming XLK by around 12% (through 8/7), meaning that the technology sector has been held back by its largest names this year—the opposite of the last few years.

Since the start of this bull market on October 12th of 2022, XLK has gained a cumulative 222.5%. Despite that, the Bullish Percent for Technology (^BPECTECH) has been at an average of 38.7% over that span. More recently, the sector’s participation reading fell below 28% with the sell-off but has since reversed back into a column of Xs at levels around 45%. Historically, that’s been a constructive area for the sector, as XLK averages a 15.4% one-year return when trading in Xs between 40% and 60%.

Additionally, the rebound in semiconductor stocks has been even more notable. The VanEck Semiconductor ETF (SMH) recently moved back to a buy signal at $570, ending its streak of four consecutive sell signals. The ETF regained near-term market RS, moving back into a column of Xs versus the S&P 500 Equal Weight (SPXEWI). SMH now holds a solid fund score of 4.51, which is up 0.87 points from its lows during the last couple weeks. While the group now faces significant resistance until its previous all-time highs, the breakout is certainly encouraging, especially when considering the group’s participation readings.

The Bullish Percent for Semiconductors (^BPECSEMI) entered washout territory at 8% but has since exploded higher to levels above 50%, signaling that the majority of semi stocks are back on buy signals. Reversals from below 10% are typically one of the most bullish moves investors can see from our indicators, but does that extend to the semiconductors group? There have been 11 other reversals from below 8% since the inception of the SMH fund. While several of those instances occurred during the dot-com bubble and 2022, the typical performance following those instances has still been positive. SMH averaged a one-year return of 17.5% and a median return of 23%, highlighting the strong magnitude of upside seen during non-bear markets. The analog to the dot-com bubble is present, with an eventual bear market remaining a possibility, but the base scenario from historical instances suggests that technology and semiconductors have further room to run.

The option suggestions featured here are pulled from the NDW Options Ideas tool. These are just a sample of the ideas that can be found there. The Options Idea tool contains numerous additional income and speculative plays. It also offers relative strength-based screens targeting the highest (and lowest) relative strength stocks and ETFs that have recently moved counter to their longer-term trend. To access or subscribe to the Options Ideas tool, click here.

Call

Apollo Global Management (APO) Nov 20 $130 Call

Put

S&P Global Inc (SPGI) Nov 20 $420 Put

Income (Short Put)

Intel Corporation (INTC) Sept 11 $88 Short Put