Stocks rallied sharply last week, fueled by short covering, institutional repositioning, and a powerful surge in semiconductor and memory chip stocks. Despite the strong move, most sectors lagged, software remained weak, and the equal-weighted NASDAQ showed declining participation, suggesting the rally lacks broad support.
With consumer sentiment at historic lows, an emergency Fed meeting scheduled, and futures falling into Monday’s open, caution is the dominant theme. Investors are advised to manage risk closely and avoid chasing new buy signals unless prepared to exit quickly.
Stephen Whiteside
Sunday, April 12, 2026
