• World News
  • Politics
  • Stock
  • Investing
  • Editor’s Pick
Blue Chip Of Success
Editor's PickStock

Tech Taps the Brakes, Homebuilders Hit the Gas: See the Rotation on StockCharts Today

by July 22, 2025
by July 22, 2025

The stock market feels like it’s holding its breath ahead of Big Tech earnings. The first two days of the trading week were mostly quiet, but Tuesday gave us a few nuggets worth chewing on.

The S&P 500 ($SPX) squeaked out another record close, up by a modest +0.06%. It’s barely a blip, but it keeps the uptrend intact.

Tech momentum slowed down a tad, but we didn’t see a wave of selling. It was more like a little profit-taking after a strong run. No reason to hit the panic button just yet.


StockCharts Tip: Head to the Market Summary page and take a glance at the Market Factors panel. On Tuesday, Large-Cap Growth and Large-Cap Momentum were the only factors in the red (see image below).


FIGURE 1. MARKET FACTORS PANEL IN THE MARKET SUMMARY PAGE. Here you see the one-day performance metrics of the factors. You can change the timeframe using the dropdown menu at the top of the page. Image source: StockCharts.com. For educational purposes.

In the US Sectors panel in the Market Summary page, Technology was the lone S&P 500 sector that finished lower. Tuesday’s action can be seen in the StockCharts MarketCarpet of the S&P 500, based on a one-day performance.

FIGURE 2. MARKETCARPET FOR THE S&P 500. The Technology sector took a bit of a hit on Tuesday, but other sectors saw gains. Image source: StockCharts.com. For educational purposes.

The big names — NVIDIA (NVDA), Microsoft Corp. (MSFT), Amazon.com (AMZN), Meta Platforms (META), and Broadcom (AVGO) — were all in the laggard camp. This pause in tech stocks comes right before a wave of Big Tech earnings.

Some of the big tech companies reporting earnings this week are Alphabet, Inc. (GOOGL), Tesla, Inc. (TSLA), and International Business Machines (IBM). All three report on Wednesday after the close. If GOOGL and TSLA come in hot with solid numbers and upbeat guidance, the S&P 500 and Nasdaq Composite ($COMPQ) could catch a tailwind. (Fun fact: both stocks closed higher on Tuesday.)

Despite Tuesday’s tech wobble, major support levels are holding. The Nasdaq Composite remains comfortably above its 20-day exponential moving average (EMA), and breadth is improving (see chart below).

FIGURE 3. DAILY CHART OF THE NASDAQ COMPOSITE. The index is above its 20-day exponential moving average, and market breadth is improving. Chart source: StockCharts.com. For educational purposes.

Small Caps Still in the Game

We’re also seeing small-cap stocks rising. When small-caps participate in the market’s upside move, it’s an indication of a healthy stock market. Healthcare stocks represent a significant portion of the small-cap indexes, which explains why Health Care was the top-performing sector on Tuesday. 

Another area that stole the spotlight was homebuilders. The SPDR S&P Homebuilders ETF (XHB) broke above its 200-day simple moving average (SMA), a positive sign for the struggling industry group (see chart below). Its Relative Strength Index (RSI) indicates that momentum is relatively strong.

FIGURE 4. SPDR S&P HOMEBUILDERS ETF (XHB). The ETF broke above its 200-day simple moving average, and momentum is relatively strong. XHB has underperformed SPY over the last year. Chart source: StockCharts.com. For educational purposes.

Over the last year, XHB has lagged the SPDR S&P 500 ETF (SPY) by roughly 18%. Strong earnings from DR Horton, Inc. (DHI) and PulteGroup, Inc. (PHM), however, have given the group a welcome boost, even with a soft housing backdrop. We’ll get the June Existing Home Sales data on Wednesday. A stronger-than-expected report could add fuel to XHB’s rally.


StockCharts Tip: The XHB chart above is part of the  Market Summary ChartPack, which is free for StockCharts subscribers. Install it, and you’ll have a ready-to-use list of charts for days like this.


Also worth a peek is the U.S. Dow Jones Home Construction Index ($DJUSHB), which topped the Dow Industries list (check the US Industries panel in Market Summary and hit the Dow Industries tab).

Gold and Silver Nudge Higher

While tech cooled and home builders heated up, precious metals prices climbed higher. Gold ($GOLD) rose 0.92% and silver ($SILVER) gained 0.94%. Gold sits just under its all-time high, and silver is back to levels we haven’t seen since 2011.

The Big Picture: Still a Healthy Market Environment

None of Tuesday’s actions suggests a crack in the market’s growth story. We are in the thick of earnings season, and that always brings uncertainty and volatility. Expectations are high for Big Tech, especially in light of a weaker dollar. Stay patient, watch the price action, and let the charts guide your next move.



Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

0 comment
0
FacebookTwitterPinterestEmail

previous post
Obama denies Trump’s ‘bizarre allegations’ that he was Russiagate ‘ringleader’ in rare statement
next post
China controls over 80% of battery materials crucial to US defense equipment, unsettling report reveals

You may also like

A Wild Ride For the History Books: 2025...

July 23, 2025

The Best Five Sectors, #28

July 20, 2025

Week Ahead: NIFTY Violates Short-Term Supports; Stays Tentative...

July 19, 2025

The Real Drivers of This Market: AI, Semis...

July 19, 2025

July Strength, Late-Summer Caution: 3 Charts to Watch

July 18, 2025

Three Stocks in Focus: One Old Favorite, One...

July 18, 2025

These HOT Industry Groups are Fueling This Secular...

July 17, 2025

Three Bearish Candle Patterns Every Investor Should Know

July 17, 2025

RGTI Stock Surged 30% — Is This the...

July 17, 2025

Simpler Charts, Better Results? Use This Trick to...

July 16, 2025

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Join The Exclusive Subscription Today And Get Premium Articles For Free


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Recent Posts

  • Supreme Court says Trump can proceed with firing Democrat-appointed CPSC members

    July 23, 2025
  • New Russiagate evidence ‘directly’ points to Obama, DOJ will decide ‘criminal implications’: Gabbard

    July 23, 2025
  • Johnson erupts over ‘dangerous’ Biden ‘cover-up’ as Democrats push Epstein disclosure

    July 23, 2025
  • Trump admin official to meet with Israel, Qatar amid push for Gaza ceasefire

    July 23, 2025
  • A Wild Ride For the History Books: 2025 Mid-Year Recap

    July 23, 2025
  • About Us
  • Contacts
  • Email Whitelisting
  • Terms and Conditions
  • Privacy Policy

Copyright © 2023 BlueChipOfSuccess.com All Rights Reserved.

Blue Chip Of Success
  • World News
  • Politics
  • Stock
  • Investing
  • Editor’s Pick