The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq found support near their respective 10-DMA, eventually
closing ~1% off all-time highs last week. Support below this level remains the rising 21-DMA (S&P 500: 4,602; Nasdaq: 15,513). The
distribution day count remains low at three and one, respectively, with one expiring on the S&P 500 today.
Symbol: RBLX
Market View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq found support near their respective
10-DMA, eventually closing ~1% off all-time highs for the week. Support below this level remains the rising 21-
DMA (S&P 500: 4,603; Nasdaq: 15,515). The distribution day count remains low at three and one, respectively.
IPO Rewind
Attached is the latest IPO Rewind report. This report identifies a select group of IPOs or spin-offs that have priced in the last two years, giving them time to digest any initial volatility. Our selected ideas display positive fundamental trends with strong top- and bottom-line consensus estimates, and IPO Rewind provides an efficient way to review these ideas that we believe warrant attention.
O’Neil TMT Weekly
Software ( IGV) : The index is on the right side of a 10-week cup consolidation and approaching a pivot of
$389. RS Rating of 54 and A/D Rating of D. High-multiple SaaS ( CRWD, NET ) constituents continue to
gradually improve and are attempting to regain resistance at their 50-DMA while a select group of large caps
( MSFT, ADBE ) continue to stand out technically.
Semiconductors ( SOXX ): We remain buyers of semiconductor stocks. The semiconductor benchmark broke
out of a six-week consolidation base on April 5 and is still trading near its pivot of $444. High RS Rating of 72
and A/D Rating of B-. Given the bullish technical action in the benchmark along with strong Q1 results from
bellwether TSMC and a positive update from Nvidia, we recommend adding risk in semiconductor stocks.
NVDA, ENTG, ANET, and QRVO are breaking out of their respective bases, while TXN, AMAT, ASML, and
LRCX are now extended from proper buy points. Stocks setting up or near buy points include AVGO, KEYS,
COHU, ADI, MCHP, SWKS, STMicroelectronics ( STM.IT ), Nordic Semiconductors ( NOD.NO ), and Ememory
( EME.TW ).
Communication Services ( XLC ): The index is trading just 1% off highs. Immediate support is along its rising
21-DMA ($75.2; -2%). RS line is in a gradual uptrend. Decent RS Rating of 64 and A/D Rating of B-. Among its
major constituents, FB is still trading in the pivot range after breaking out, while GOOGL is trading at all-time
highs. NFLX and TMUS are forming the right side of their respective bases while DIS pulled back to the pivot
of its recent base and is testing support at its 10-WMA.
