VoSI Weekend Review for the Week Ended July 17, 2026

Published:

19 Jul 2026 16:14 ET

July remains a difficult month for the AI tech bulls as the NASDAQ 100 Index, where the selling has been concentrated from an index point of view, retests the early June lows. It ended the week down 7% from the early June peak, so is back into what could be termed an intermediate correction.

Meanwhile, the S&P 500 sits just 2% below the early June all-time highs but closed Friday just below 50-dmasupport on heavy options expiration OpEx volume.

The relatively benign action in the $NDX masks the carnage that has occurred in the AI-related semiconductors which were previously on fire heading ito mid- to late-June. Advanced Micro Devices (AMD) is perhaps one of the better acting names in the space as it recently posted fresh all-time highs, but that has since evaporated as the stock is now 21.29% below those highs, with almost all of that decline occurring in just the past four trading days. Applied Materials (AMAT) is now -30.61% below its prior June peak, Arm Holdings (ARM) an astounding -46.29%, Intel (INTC) a brutal -37.09%, Micron Technology (MU) a painful -35.93%, Marvell Technology (MRVL) a disastrous -46.05% off its highs after Nvidia (NVDA) CEO Jenson The Big Huanger Huang declared that it would be the "next trillion-dollar company," SanDisk (SNDK) a very harsh -43.72%, Seagate Technology (STX) a vicious - 38.83%, and Western Digital Corp. (WDC) a ferocious -46.17%.

The action in the semiconductors makes any argument over whether the group was in a bubble a month ago utterly moot. Certainly, if it looks like a bubble, acts like a bubble, smells like a bubble, and most importantly pops like a bubble, it is/was probably a bubble.
Clearly the semiconductor group along with other AI-related big-stock techs like Telecoms...

...and Data Center Infrastructure/Energy names, are all now deeply oversold after severe declines off the highs over the past 3-4 weeks.

In many cases the extended declines in these names all serve to prove Bill O'Neil's old axiom that what is oversold can always get a lot more oversold. The question now is whether these names can muster any kind of meaningful reaction rallies from current levels or whether they will simply spend some time consolidating the prior downtrends before moving lower.
With the resumption of all-out hostilities in Iran and the Fed talking tough ahead of next week's policy announcement, the market may be faced with a rocky, if not messy, road ahead. Caution and cash are your best allies. Stay tuned.
The Market Direction Model (MDM) switched to a SELL signal on Monday, July 13, 2026.

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