EB Daily Market Report - Thursday, June 25, 2026

Most of our key indices are either up or down less than 0.50%, so on the surface it doesn't really appear to be a volatile day. For me, however, I've been watching an extremely volatile semiconductor group mostly gain ground after Micron Technology (MU, +17.41%) blow away its quarterly revenue and earnings estimates.

During yesterday's Live Trading Room session, I gave my opinion that I believed we were going to see a very strong report from MU and a likely gap higher. But, if that turned out to be the case, which it did, I wanted to see how semiconductors, as a group, traded once the opening bell rang. That's where the volatility has come in. The iShares Semiconductor ETF (SOXX) is up nearly 4% at last check, but its high of the day was its open. That's what I worried about yesterday. Could the semiconductors gap higher, break out, and sustain a strong open? The SOXX opened up 6%, promptly fell back in the first 20 minutes of trading to turn negative, and has since rallied back 4%, but not to the opening high. From a daily chart perspective, the SOXX is having a nice day, but really nothing has changed on its chart:

I provided this same chart in the DMR 16 days ago. Since then, we've seen one more breakout, but still with a negative divergence intact. One potential negative that's new and has emerged is that the AD line consistently has risen with the SOXX price action, but that changed on the latest breakout. The red line above shows that the latest high was accompanied by a lower AD. I wouldn't consider this a MAJOR warning, but it's at least worth noting.

The high set on Monday remains our resistance. The 20-day EMA, currently at 590.10 and tested on Wednesday, remains our support. A negative divergence clouds the picture as it suggests we could see an upcoming 50-day SMA to reset the daily PPO at the zero line. Therefore, it's important to watch that 20-day EMA. If it fails to hold as support, then the double bottom earlier in June near 540 comes into play, along with the 50-day SMA, currently at 526.43 and rising rapidly.

The S&P 500 and NASDAQ 100 are not making much headway higher, despite the huge report from MU and the resulting strength in semiconductors. That adds to the likelihood that we're in a period of consolidation, rather than being in the process of breaking out and extending this secular bull market run.

While we consolidate, it might be helpful to keep an eye on, and possibly trade, stocks making key breakouts or testing key support. Here are several I'm watching (or buying):

INOD:

This is a stock that I drafted in the Super Bowley Fantasy Stock Draft vs. Dave Keller, Grayzon Roze, Julius de Kempenaer, and the SCTR Team at the beginning of June. Unfortunately, in the draft, we can't wait for stocks to hit key support to buy, so we just buy at the price at that time. In trading, however, we have the benefit of patience. INOD has returned to its opening price after reporting CRAZY good earnings back on May 7th. The opening price the next morning was 72.92. In my opinion, that is the most important support level on the chart:

(Disclosure: I own shares of INOD)

DBI:

This isn't exactly a chart that's been flying higher, but the AD line has been solid and it certainly seems to find buyers every time it dips below 6.00. It's approaching that level again:

During the big overall selling in the market in March, DBI lost the top of gap support, but otherwise, it's been a fairly reliable support level. Given the continuing rise in the AD line, I'm suspecting that this support level holds again.

CASY:

I mentioned this one in the Live Trading Room yesterday. After earnings, CASY exploded to the upside, gapping up to open at 800.65, then rallying throughout the trading day and closing at 915.60. That's a LOT of buying and accumulation. Now here we are, two weeks later, and CASY drops back to not only test the top of gap support, but yesterday it nearly tested the bottom!

Our tag line at EarningsBeats.com is "Better Timing. Better Trades." We cannot provide any guarantees as to the success of trades, but we can help our members manage risk better. That's what successful and profitable traders do. They manage risk by exercising patience and pouncing on better reward to risk opportunities.

(Disclosure: I own shares of CASY)

OKTA:

This stock already tested key gap support, and I've shown stocks like this in the past, but this is exactly what we're looking for on stocks like INOD and CASY above:

After reporting strong earnings and receiving a very bullish reaction from Wall Street, OKTA has quickly become a leader in the software space ($DJUSSW), joining the likes of CRWD, FTNT, DDOG, FROG, PDFS, RIOT, TWLO, etc. If you're going to trade a weak area like software, you want to make sure you're doing it with leaders in the space, definitely not like laggards. If you need to see what happens when you trade relative laggards in a weak industry group, check out PLTR, NOW, ADBE. They all show relative weakness, though PLTR does still have a fairly strong AD line. Therefore, I'd give that one the best chance of a quick recovery.

NTAP:

Network Appliance (NTAP) is interesting, because after gapping higher with earnings, it's retreated to test its rising 20-day EMA, but hasn't quite made it to fill the gap:

I love the fact that the AD line here is beginning to turn back up while it consolidates around the 20-day EMA. While that doesn't guarantee us that we won't see further weakness ahead and a gap fill, it does start to turn the odds a bit more in the bulls' favor, in my view.

(Disclosure: I own shares of NTAP)

Special NOTE:

Have a great day and remember that we have two big events coming up beginning with Saturday's "Is This An AI Bubble" at 10:00am ET. We'll send out instructions as the event nears and it will be recorded in the event that you cannot attend the live session. On Monday, we'll host our quarterly "MarketVision 2026 Q2 Update". This is an annual member perk, so if you're currently a trial member or a monthly member and would like to become an annual member, simply respond to this email and we'll get you set up!

Happy trading!

Tom