It felt like a day made for chips.
Even though tensions rose between the United States and Iran, chip stocks kept climbing. Traders seemed less worried about the news. The VIX stayed under 20, oil fell a bit, and stocks moved higher.
Semiconductors Lead the Charge
Chip companies pushed the market up on Thursday. The VanEck Semiconductor ETF (SMH) rose 2.48%, but it closed just under its 21‑day exponential moving average. This shows how quickly market mood can change.
Trading volume was a bit low, which is normal for July.
Can the "Mag 7" Take the Lead Again?
The Roundhill Big Tech ETF (MAGS) also ended higher, bouncing off its 200‑day simple moving average. After a long quiet spell, the Magnificent Seven are finally getting attention.
Since its June 26 low, MAGS has made several solid up‑days with above‑average volume. The 50‑day average might act as resistance, but a strong break could bring the Mag 7 back to the front of the market.
Momentum indicators like the RSI and PPO are starting to rise.
The biggest mover was Meta Platforms (META), which jumped 4.70%. A bullish engulfing pattern appeared on its chart, signaling a possible bounce from a key support level toward the 200‑day average.
If tech optimism keeps growing, the broader market could try for new highs.
S&P 500 Breadth Looks Strong
Tech strength helped the S&P 500 break above 7,500. Staying above this level could lead to a push toward the all‑time high, though resistance may appear around 7,560.
If the index falls back below 7,500, the next support is the 50‑day average near 7,425. Below that, the 7,260‑7,300 zone offers another safety net.
More than half of the S&P 500 stocks are trading above their 20‑, 50‑, 100‑, and 200‑day averages, indicating healthy market internals.
Risk Appetite May Be Returning
Cryptocurrencies are showing early signs of life. Bitcoin is trading above its 21‑day EMA, though it still needs to clear a few resistance lines for a stronger rally.
Oil Prices Pull Back
After jumping 4.37% on Wednesday, light crude oil fell 2.35% on Thursday. The decline suggests oil news isn’t weighing heavily on stocks. The 21‑day EMA still acts as a strong resistance line.
What to Watch Next
On Friday, South Korean chipmaker SK Hynix begins trading on the Nasdaq. It could give semiconductors another boost.
Keep an eye on crypto and oil as they can swing the market quickly. You can’t control the market, but you can manage your positions wisely.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always consider your own situation and consult a professional before acting.
Source: Materials provided by https://articles.stockcharts.com.Note: Content may be edited for style and length.