# Something Strange Is Happening To Markets… **Date:** 2026-06-26 **Source:** [YouTube](https://www.youtube.com/watch?v=779aqBCGNOg) ## Main Thesis The market is experiencing a strange bout of volatility, highlighted by a flash crash in the NASDAQ and significant weakness in Magnificent 7 stocks. This suggests a potential late-cycle rotation out of mega-cap tech and into other sectors, even as the broader market shows some underlying strength. ## Charts & Technical Analysis ### 1. NASDAQ (None) **Bias:** NEUTRAL/BEARISH Atkinson highlights a flash sale where the NASDAQ lost over 1,000 points in just 27 minutes without a major headline. This event signifies that volatility has returned to the market. The sell-off occurred despite strong earnings from Micron, indicating potential distribution. ### 2. Micron (MU) (None) **Bias:** NEUTRAL Micron reported an "absurd" 86% gross margin, which led to a "buy the fact and then sell the actual fact" reaction. While the stock rallied, it experienced significant volatility. The strong earnings were used as a justification by Apple and Microsoft to raise their own prices. ### 3. USO (Oil) (weekly) **Bias:** NEUTRAL **Pattern:** downtrend, testing 20 moving average USO received its first major dark pool print in a while. While still in a downtrend, there are a couple of large transactions and signs of life. The chart shows a pattern of rejections at the 20-period moving average followed by lower lows, and it is currently testing that zone again. Atkinson questions if the recent sell-off was overdone. ### 4. Magnificent 7 (None) **Bias:** BEARISH **Pattern:** rotation, underperformance The Magnificent 7 stocks are losing steam relative to the Russell, the equal-weighted RSP, and the QQQ. This is described as a feature of a potential late-cycle market, with rotation occurring into hardware, small caps, and other sectors. A chart of X-Mag vs the Magnificent 7 shows the market is punishing companies for paying too much for hardware. ### 5. Semiconductors (daily) **Bias:** NEUTRAL **Pattern:** uptrend, watching 20 moving average Semiconductors saw a number six dark pool read, following the largest read ever just 48 hours prior. The sector vs the SPY is still in an upward trend with higher highs and higher lows. However, Atkinson warns to watch if the sector loses the daily 20 moving average, as it could lead to 'waterfall effects'. ### 6. ProShares UltraShort S&P 500 (SDS/SH) (None) **Bias:** NEUTRAL **Pattern:** defended level There have been a bunch of transactions in the inverse S&P 500 ETFs. A key level is being defended; if these ETFs break up (meaning the S&P 500 goes down), it could suggest sneaky shorting action from Wall Street. ### 7. QQQ (Nasdaq 100) (daily) **Pattern:** potential head and shoulders, island reversals **Key Levels:** 7300 put level, 720 expiration level, 700 expiration level, 705 expiration level The QQQ is seeing monster transaction clusters. The chart is described as confused, with a potential random head and shoulders pattern and both island reversal up and down possibilities. The monthly and weekly are still bullish, but daily and smaller timeframes are turning negative or sideways. Key options levels show 7300 is a major put strike, with 700, 705, and 720 being massive expiration levels. The price at the time of recording was about 716. ### 8. US30 (Dow Jones) (None) **Bias:** NEUTRAL The Dow Jones did not experience as much selling as other indices, showing relative strength. ### 9. Russell 2000 (None) **Bias:** NEUTRAL The Russell is also not as weak as the NASDAQ, indicating rotation into small caps. ### 10. KRE (Regional Banks) (None) **Bias:** BULLISH Regional banks have continued to move up. This is significant because in a systemic sell-off, banks would typically be getting 'thrashed'. This suggests the current pressure is concentrated on the AI trade and not the broader market yet. ### 11. Advance-Decline Line (None) **Bias:** BULLISH **Pattern:** uptrend The Advance-Decline line continues to go up even while the S&P was down on the session. This indicates positive market breadth under the surface. ### 12. US 500 (S&P 500) (daily) **Bias:** NEUTRAL/BEARISH **Pattern:** rejection candles **Historical Comparison:** similar to recent weekly candles on Nvidia and Apple The S&P 500 futures are under pressure. The daily chart shows 'strange rejections' and a candle that 'looks kind of bad'. Atkinson compares this to similarly 'horrendous' weekly candles on Nvidia and Apple which preceded sell-offs in those stocks. ### 13. Apple (AAPL) (None) **Bias:** BEARISH **Pattern:** collapse Apple has seen a 'bit of a collapse' and is in correction territory, almost potentially in bear market territory, after a recent announcement. ### 14. Gold (GLD) (None) **Bias:** NEUTRAL **Key Levels:** 360 support, 365 support Gold is getting closer to a key support point between 360 and 365. It is currently trading around 369 and has found some buying pressure near this important zone. The strong dollar has been pressuring gold. ### 15. US Dollar Index (DXY) (None) **Bias:** BULLISH **Pattern:** Wyckoff style base, double bottom, uptrend The dollar index has been rallying, forming a 'beautiful Wyckoff style base' and a double bottom. It is making a series of higher highs and higher lows, which is putting pressure on metals. A level of '10360 to 104' was mentioned but is clearly a transcription error. ### 16. Copper (None) **Bias:** BEARISH **Pattern:** downtrend Copper is falling, which makes sense given the strength in the US dollar. It has not yet hit its major support zone. ### 17. Gold Stocks (None) **Bias:** NEUTRAL **Pattern:** holding above lows Gold stocks are holding above their lows, suggesting they are outperforming spot gold, potentially benefiting from cheaper fuel costs. ### 18. Silver (None) **Bias:** BEARISH **Pattern:** downtrend Silver is getting 'thrashed' as it's a mix of a precious and industrial metal. Atkinson compares it to the NASDAQ or Ethereum, suggesting it will follow gold's lead if gold finds support and starts moving up. ### 19. XLY vs XLP (None) **Bias:** BEARISH **Pattern:** weakening trend The ratio of consumer discretionary to consumer staples continues to weaken, indicating stress on the American consumer. ### 20. XLY (Consumer Discretionary) (None) **Bias:** BEARISH **Pattern:** making a new low XLY made a new low, showing significant weakness under the hood and suggesting the 'K-wave phenomenon' could be weakening. ### 21. STRC (MicroStrategy Note) (None) **Bias:** BEARISH **Pattern:** downtrend **Key Levels:** 75 Described as a 'pretty scary' chart, the MSTR variable rate note is showing extreme pressure and is down at 75. Atkinson notes if he saw this in a bond, he'd be scared. ### 22. MSTR (MicroStrategy) (None) **Bias:** BEARISH **Pattern:** freefall MSTR is in 'freefall' along with its STRC note. This extreme pressure is dragging on Bitcoin and may force the company to sell some of its Bitcoin holdings. ### 23. Bitcoin (BTC) (None) **Bias:** BEARISH **Pattern:** downtrend, lower lows and lower highs **Key Levels:** 34 put support Bitcoin is falling through, under significant pressure from the MSTR situation and potential liquidations. It is trading underneath its major put support of 34 (likely 34k, but stated as 34). The price action is making a series of lower lows and lower highs, and there has been no change in institutional flow yet. ### 24. KOSPI (daily) **Bias:** NEUTRAL **Pattern:** testing 20 moving average Transcribed as 'Cosby', the KOSPI (a key semiconductor bellwether) is coming under pressure and almost dropping its 20 moving average. ## Regime / Cycle Analysis Atkinson discusses a potential 'late cycle market' characterized by rotation from the Magnificent 7 into other areas like small caps (Russell), equal weight (RSP), and hardware. He also mentions the 'K-wave phenomenon' weakening as the consumer (XLY) shows signs of stress. The analysis contrasts the weakness in the AI-related mega-caps with strength in other market segments like regional banks (KRE) and positive breadth (Advance-Decline line), suggesting the current issue is concentrated in the AI trade and not yet systemic. ## Key Calls & Predictions - Volatility is back and we need to be paying attention. - A warning that if semiconductors lose the daily 20 moving average, it could lead to 'waterfall effects' and liquidations. - The market is in a state of confusion and 'indifference' or patience may be the best approach rather than FOMO or extreme fear. - The upcoming earnings season is 'the most important earnings we've had probably five years' and could be a catalyst for the AI bubble to potentially fail. - The extreme pressure on MSTR could lead to forced Bitcoin selling, creating a volatile situation. ## All Instruments Mentioned NASDAQ, Magnificent 7, Semiconductors, Apple (AAPL), Microsoft (MSFT), Micron (MU), USO, SPY, QQQ, Bonds, Russell, RSP, Utilities, Healthcare, Regional Banks (KRE), Biotechnology, Metals, ProShares UltraShort S&P 500 (SDS), SH, US30, US 500, Nvidia (NVDA), Gold (GLD), Dollar Index (DXY), Bitcoin (BTC), Copper, Gold Stocks, Silver, XLY, XLP, STRC, MSTR, SpaceX, KOSPI, Sandisk, DRAM --- *Generated by FX Evolution Monitor on 2026-06-29 12:06:04*