Four in a Row
Dan Russo, CMT
April 27, 2026
Mark it. That’s four in a row for both the S&P 500 and the NASDAQ 100, as geopolitical and interest‑rate fears once again gave way to the U.S. investor’s never‑ending “buy the dip” mentality.
At the same time, two key intermarket themes are trading like meme stocks. One highlights the continued absurdity of relying on price‑weighted indices. The other reminds us that a group long left for dead has made a dramatic comeback. I’m talking about Transports and Semiconductors, respectively.
S&P 500 and NASDAQ 100
Both key averages printed new highs last week, firmly above their rising 60‑week moving averages. Each closed at or near the top of its weekly range.
Source: Optuma
Dow Jones Transportation Average
The Transports also printed a new high before reversing sharply. Much of the volatility can be traced to one stock, Avis Budget Group (CAR), which has traded like a meme stock straight out of 2020 or 2021.
This is a perfect example of the flaw in price‑weighted indices. Both the Dow Industrials and the Transports are constructed this way, meaning the highest‑priced stocks exert the most influence. According to this logic, Avis is or was suddenly the most important Transportation stock in America.
I’ll step off the soapbox now and simply note that, mechanics aside, Transports remain a key intermarket signal and continue to trade above their rising 27‑week moving average.
Source: Optuma
Semiconductors
Long‑time readers know I believe semiconductors are one of the greatest inventions of the past 100 years, if not the greatest.
The VanEck Semiconductor ETF (SMH) just logged its best three‑week performance in the history of the product. While there are plenty of drivers behind the strength, I’m particularly intrigued by Intel (INTC), which appears to have been reborn and has pushed to new highs.
Source: Optuma
The Mag Seven
The Roundhill Magnificent Seven ETF (MAGS) has reclaimed both its 50‑ and 200‑day moving averages and is on the verge of printing new highs. Relative performance has improved as well.
The bulls do not need the Mag Seven to lead outright, but participation matters and it is coming back.
Source: Optuma
NYSE Decliners and New Lows
Despite the strength in headline indices last week, it’s worth noting that we also saw an uptick in both decliners and new lows on the NYSE.
This doesn’t negate the uptrend, but it’s something to keep in the back of your mind as the market stretches higher.
Source: Optuma
Final Thoughts
New highs are not bearish. A four-week winning streak is not bearish. Despite construction flaws, the transports are strong and the semis are massive leadership. If decliners and lows don’t expand, the path of least resistance is up.
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