The near-vertical price acceleration and exhaustion behavior signal major correction risk for (semiconductor) stocks. Although there are no bearish triggers yet, we would like to highlight Wall Street veteran Bob Farrell’s rule: 'Exponential rapidly rising or falling markets usually go further than you think, but they do not correct by going sideways’ …
Long-term bond yields continue to trend higher across major developed markets. Technically, the path of least resistance for 10-yields appears higher..
The AI-fueled surge in semiconductor stocks is pushing the main US stock markets deeper into what increasingly looks like a classic melt-up phase. With very narrow market leadership and sentiment turning more euphoric, the rally may be entering its most explosive stage yet. Historically, these late-stage melt-up phases can persist far longer than expected. Is this the start of a final buying climax before a major reversal?
US stock market: From buying the dips to selling the rallies?
Thursday, 09 April 2026
There are signs that US stock market bulls are quickly gaining back control - the semiconductor index is already making new all-time highs. At the same time, there is a good case to be made for renewed price weakness over the coming weeks or months..
Announcement:Due to the author being out of the office, the next edition of the Technical Trend Outlook report will be published on Thursday May 7, 2026.
