EB Daily Market Report - Friday, July 17, 2026

Dear Members:

 

Semiconductor stocks continue to be under pressure, with all major indexes lower on this options expiration Friday.

 

At its low today, the SMH, the ETF for semis, was down 20% and in bear marketterritory. The 20-day and 50-day moving averages are converging, both right near 597. Should the 20-day move below the 50-day, we could see more selling, but if it holds, the worst of the selling could be over.

 

Some might argue that the selling in semis was necessary, given the non-stop move in the sector starting March 30 right up to the June 22 high when the SMH had gained 87%. So the question is: will traders see this as an opportunity to jump back in or will the bears maintain control and drive semis even lower?

 

The NASDAQ continues to be the weakest of the major indexes, trading well below both its 20-day and 50-day moving averages. Although the $VIX is off session highs, it reached 19.50 when it crossed above all key moving averages, putting traders on notice to proceed with caution.

 

Earnings season will kick into high gear next week when we hear from some big names including, Google, Intel, Texas Instruments and Tesla, to name a few. So far, the picture has been mixed: some big banks posted solid numbers but tech related stocks like IBM and NFLX missed expectations. So get ready for continued volatility as traders assess the impact of numerous earnings reports coming out over the next several weeks.

 

 If the S&P can close above its 50 day, currently at 7465, that would be a positive. Even better would be a close above the 20 day, currently at 7496.

 

Tom will be back with his Weekly Market Report on Monday.

 

At your service,

 

John Hopkins