Last week was another intense week for the stock market, which declined out of the gate on strong reactions to earnings from key companies, including Super Micro Computer (SMCI). Technology (XLK) was one of the weakest sectors, dragged down hard by Broadcom (AVGO) and Coherent Corp. (COHR).  Energy (XLE) saw moves outside investor favorites and leading the gains were the refiners and independents.

There is an interesting phenomenon emerging with hyperscalers moving down while the broad market holds it together.

Medium-size and small-caps stocks enjoyed the strongest moves.  It's amazing how much large-cap value has outperformed large-cap growth. 

The Semiconductor index (SMH) has gained 9% so far this month, marking its best August since 2020.

Broad Market

Market breadth was not bad last week, with more advancers over decliners and new highs over new lows.

The S&P 500 52-week highs minus lows and 10-DMA (blue line) showed limited new-high participation despite the index remaining near its all-time high. 

Earnings season continues with retailers taking the spotlight this week.

Coming into this week, the Fed minutes will be the highlight.