The TML Report February 17, 2026 – Constructive Shakeout

Market Overview

The NASDAQ continued to sell off again this afternoon. However, its overall action on the day was bullish. It undercut its prior swing low before rallying back and closing above key support. The S&P 500 behaved similarly today, but is trading closer to its prior all-time high than the tech-heavy Index.

Meanwhile, the Russell 2000 and Dow Jones continue to trend higher without significant difficulty. When the major indexes send mixed messages like this, I look to the health and breadth of the market’s leadership for clues.

Unfortunately, the market’s leadership is giving mixed signals as well. We’ve seen a clear move into defensive areas of the market recently, yet plenty of growth names continue hold up and build constructive bases.

So, if you are a position trader looking to get concentrated in just a few big leaders, the current environment is not conducive. Therefore, minimal exposure is recommended until conditions improve, even if that means cash.

Indexes

QQQ

The NASDAQ undercut its prior swing low today. However, it quickly began to rally thereafter and finished the session back above key support, which is considered healthy, constructive action.

SPY

The S&P 500 shaped up similarly to the Nasdaq this afternoon. However, it finish the day higher in its overall pattern than the tech-heavy Index.

IWM

The Russell 2000 has found support at the confluence of its prior high and 50-day SMA, over the last three sessions, which is considered healthy, constructive action.

DIA

The Dow continues to hold up the best of the four major Indexes. However, that's not saying much given it's a weighted index of just 30 stocks.

Focus List

ASML

ASML has tightened up constructively above its 21-day SMA over the last few weeks and looks like it's setting up to head higher.

LRCX

LRCX goes hand in hand with ASML and is setting up in a similar manner. However, it is a more volatile stock.

MU

MU is a leading name in the memory space that is setting up constructively above its short-term moving averages. Watching MU for a potential entry in expectation of resolution to the upside.

SNDK

SNDK is a prominent leader in the memory space, which continues to exhibit extreme relative strength as it consolidates above its short-term 10-day SMA. Watching SNDK fora potential entry in expectation of resolution to the upside.

ONTO

ONTO continues to consolidate constructively, slightly below its 52-week high, and more importantly is setting up for a green line breakout above its July 2024 prior all-time high, which you can easily see on its monthly chart.

LITE

LITE looks ready to break out to the upside from here, which is an extreme show of strength when you consider that the NASDAQ has been making lower lows since January 28th.

VIAV

VIAV continues to trade sideways in a tight range above its 10-day SMA, appearing as if it's setting up to continue higher despite the recent weakness on the NASDAQ index.

VICR

VICR is consolidating constructively above its 23-day EMA and prior high, and It looks like it's setting up to ultimately break out and head higher.

ATRO

ATRO has been consolidated constructively in a tight range above its 23-day EMA over the last few weeks, where it looks like it's setting up to head higher.

PL

Watching PL for a potential entry versus its 50-day SMA and/or on a breakout above its declining tops line and key moving averages.

PACS

PACS broke out on heavy volume today and looks like it can still be purchased on constructive weakness from here.