EB Daily Market Report - Brief Update - Wednesday, February 4, 2026

Selling has accelerated on Wall Street as semiconductors ($DJUSSC, -5.85%) have come under intense selling pressure. Advanced Micro Devices (AMD, -16.95%) reported its quarterly results after the close on Tuesday and traders were not impressed. AMD has reached support just under 200 where it bottomed in the second week of January, mid December, and late November. Failure to hold this key price support level could lead to a test of the bottom of gap support at 164.67.

The Volatility Index ($VIX, +13.44%) is soaring and back above 20. History tells us to be extremely cautious when the VIX is rising and above 20. The bulls need to defend right here, today, or we could see selling really intensify over the balance of the week.

Recently, on one of my YouTube shows, I showed an RRG chart of technology (XLK) breaking down into the lagging quadrant shortly after the February 19, 2025 top. It looked like this as of February 28, 2025:

That helped to ignite the beginning of a cyclical bear market that ended in early April 2025. Now let's fast forward to where we sit at 1pm ET on February 4, 2026:

When the S&P 500 sees this much technical damage in its largest sector, it typically spells T-R-O-U-B-L-E.

The bulls need a huge kick save this afternoon. Otherwise, this selling could just be getting started. Be careful.

Happy trading!
Tom