Software stocks are getting left behind again while semiconductors are on fire.
The iShares Semiconductor ETF (SOXX) is up nearly 25% from its March 30 low and has tagged a record intraday high in each of the last three sessions.
Meanwhile, the iShares Expanded Tech-Software ETF (IGV) is down 4% over the same stretch, headed for a third straight loss, and back near late-2023 levels.
Over the past week, Snowflake (SNOW) and HubSpot (HUBS) were both down over 20%, clocking their worst weeks in at least four years. Meanwhile, Cloudflare (NET), Intuit (INTU), Atlassian (TEAM), Workday (WDAY), Zscaler (ZS), Datadog (DDOG), DocuSign (DOCU), and RingCentral (RNG) were all down 10% or more.
On Wednesday, I asked TrendLabs founder J.C. Parets what would be a warning sign that the market could roll over again, and his answer was simple: Software making new lows.
That warning just flashed.
His other canary is the US Dollar Index (DX-Y.NYB) pushing back above 101. For now, that one has not triggered. The dollar is in a fifth straight down session and now trading with a 98 handle.
Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.
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