10/08/2026
π¨ Tech Rotation Is Accelerating β SMCI Setup to Watch
The market is consolidating in a tight range, but the rotation into technology is becoming increasingly important.
This Trade of the Week video breaks down the current market structure, the semiconductor setup, and a defined-risk trade in Super Micro Computer. π
π The market setup
The model shows a neutral trend for the next 10 days as we approach midterm elections and earnings season.
Key SPX levels:
760 support
775β780 resistance
The recalibrated 6-month model sees:
740 as oversold
780 as overbought
A move toward 800 could potentially develop in December.
π The bigger picture
π 10-year yield building a top near 5.25%
π 2-year yield pulling back
π’οΈ Crude oil retreating toward its 50- and 100-day moving averages
βΏ Bitcoin pushing toward 85,000
π» Technology stocks attracting capital
At the same time, equal-weighted S&P and value stocks are correcting under interest-rate pressure.
π₯ Technology is where the relative strength is showing.
SMH is holding above 600, which was previously resistance and is now acting as support.
π― Trade of the Week: SMCI
Super Micro Computer
40/45 November call spread
π° Risk: $2.45
π― Potential profit: $2.55
The strategy also uses option laddering, moving exposure from October toward November contracts.
π Watch the full Trade of the Week video on YouTube to see the complete market analysis and how the SMCI setup fits into the broader technology rotation: https://youtu.be/JBXSzTYU7wU
In this Trade of the Week video, YellowTunnel CEO and founder Vlad ...