EB Daily Market Report - Special Update - Tuesday, June 9, 2026

Our major indices have been extremely volatile the past few sessions as the unabated uptrend off the March low, driven mostly by aggressive growth stocks, has, for lack of a better word, abated. The rather violent moves to both the upside and downside have been driven primarily by semiconductors, but also software as well. Here are a few semiconductor charts to consider:

$DJUSSC:

SOXX:

SMH:

Their component stocks differ, but their charts are similar. The primary issue on each is the negative divergence present on their daily charts. Any time I see a negative divergence, I think to myself, "50-day SMA test upcoming". It isn't a guarantee, but based on my experience, the odds increase significantly.

Software has also been an issue the past 3-4 trading sessions and key large cap software stocks are testing what I consider to be fairly significant support. Check these out:

ORCL:

MSFT:

PLTR:

Oracle Corp (ORCL) reports its latest quarterly results on Wednesday after the closing bell. It's very difficult to predict what might happen there, but it could very well influence whether support on MSFT and PLTR hold. AD lines on these stocks appear to be solid, so my educated guess would be that support holds and software begins to move higher from here. But obviously, the ORCL earnings report will have a lot to say about that.

Internet stocks ($DJUSNS) are also testing a key gap support level from late April, a gap support area that I pointed out in the June 2nd DMR. Here's a reprint:

As far as I'm concerned, if we can figure out what these 3 industries will do from here, we've largely figured out the S&P 500, because they are the 3 largest industries in the S&P 500. The internet and software support areas are very close to current price and are easier to pinpoint. The semis, by contrast, are much more fluid and volatile with plenty of downside room until we see 50-day SMA tests.

I'll keep you posted on what I'm seeing. But whether we go lower or not in the near-term, please remember that I remain definitively bullish for the longer-term, so this is a trading issue, not an investing one.

Happy trading!

Tom