Five Giants Reporting, One Question

Will the Magnificent Earnings Week Extend the Rally or Expose the Cracks Beneath It?

The week ending April 24 delivered a technically rich but internally divided market. The Dow Jones and S&P 500 consolidated as anticipated in the previous Weekly Compass, with the SPX filling its gap at $7,051.2 as likely considered. Tech (NDX) surged +2.4% for the week, and the semiconductor sector printed a +9.1% breakout reaching unprecedented overbought conditions that we will study today. The Three Green Soldiers pattern on the SPX and NDX weekly chart mentioned last week is in bullish play, and Bitcoin continues moving north since it was anticipated three weeks ago. The cryptocurrency has gained +13.7% since, and Ethereum +9.9%.

But beneath the surface, a different story has been developing. The stock participation has decreased from 78% to 59% over four sessions while the SPX moved higher. Fewer than 53% of stocks are above their 50-day average. The rally that carried the index was not a broad market recovery. It was a semiconductor event, with INTC, TXN, MU, AMD, AVGO, and SMH doing the heavy lifting with weekly moves above 9% each, while software names (NOW, ADBE, ORCL, PLTR) collapsed or yielded gains respectively. The financial sector leadership (JPM, V, BRK.B) deteriorated. That divergence is the defining tension entering the most important earnings week of 2025: Alphabet, Apple, Microsoft, Amazon, and Meta all report.

Will semiconductors consolidate next week? Can the ‘Magnificent Five’ deliver the bullish results the market expects? Will non-tech sectors continue their decline, or can Software stage a recovery?

The indicators to navigate these questions are detailed in this publication. We analyze SMH, NVDA, AVGO, and AMD with specific levels that, if held, would validate a bullish continuation. Additionally, the charts for all the ‘Magnificent Seven’ are always here along with non-tech megacaps, identifying the critical support and resistance levels to watch. Regarding software, a special edition was posted last Wednesday following the sell-off; get access using the link:

Fundamental + technical Special: PLTR, ORCL, NOW, PANW, ADBE, CRM, SAP, CRWD

Another key read for the Magnificent Seven in the A.I. era was posted this month, this is key for the week ahead:

Investing in the AI Era: MSFT, AAPL, GOOG, META, AMZN, TSLA, AVGO, NVDA

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Today’s Agenda

• The Momentum Map: Analyzing the stage of every security in a single chart.

• Market Context: Technical charts and price levels for U.S. Indices, Volatility, Breadth, and Crypto.

• Deep Dive: Individual analysis of Magnificent Seven and other Megacaps.

• Setups Blueprint: Entry levels for short and long setups with price targets and invalidation levels for all the securities in the watchlist prioritizing stronger setups.

Let’s begin,

Momentum Map: A New and Disparate Order

As anticipated few weeks ago, the red quadrant offered good opportunities for longs, and that was correct, after three weeks a new leadership emerged, but keep an eye on this hidden points to consider: