The TML report March 27th, 2026 – NASDAQ New Lows

Market Overview

As the war in Iran continues, so do new lows on the Nasdaq, S&P 500, and DOW. The Russell 2000 is just a hair away from doing the same. For now, the small-cap index continues to hold above its prior swing low and key 200-day SMA. Will it ultimately follow the other three major indexes lower next week, or will it continue to exhibit relative strength above key support? Only time will tell.

In stark contrast to the broader market, there’s been no shortage of traditional growth stocks that have continued to exhibit extreme relative strength. This extreme divergence is uncharted territory for me. One day I think the leaders will ultimately pull the indexes higher, and the next I feel like it’s just a matter of time before leadership finally breaks with the market.

On Friday, three of the four major indexes gapped down, sold off, and closed near session lows on heavy volume for their second day in a row, and yet, a mind-boggling number of leaders continued to hold up above key support levels. Many of which defy gravity and logic, trading well above their short-term moving averages with ease.

As I said in the last report, there is no right or wrong way to do things at this point. There is only what’s right for you. So, whether that be operating in the groups of leaders that are working, or sitting out and waiting for the general market to confirm the current strength in the individual leaders, just make sure you are managing risk and watching your equity curve.

Otherwise, continue updating your watch lists, make sure your alerts are set, and be ready for anything.

Indexes

QQQ

The NASDAQ rallied into significant overhead resistance at its 200-day SMA on Wednesday and then proceeded to gap down and sell off sharply on heavy volume on both Thursday and Friday, closing at the session lows both days.

SPY

The S&P500 action last week basically mirrored that of the NASDAQ's. The only difference was that the S&P didn't officially make a lower low until Friday, whereas the NASDAQ undercut on Thursday.

IWM

The Russell 2000 has yet to make a lower low, but it isn't far away. For now, it continues to hold above key support at its 200-day SMA.

DOW

The Dow has formed a similar pattern to the S&P 500 over the last several weeks, although one could argue that it's holding up a little bit better.

Focus List

GLW

GLW is the first five big leaders that appear at the top of today's focus list, from the fiber optic and communications equipment areas of the market. GLW has formed a constructive consolidation over the last several weeks and continues to trade above key short-term support, and appears to be setting up to head higher from here, despite an extremely weak general market environment.

VIAV

VIAV is an extremely powerful leader in the communications equipment group, which broke out to new all-time highs on heavy volume last week; however, it pulled back with the market on Thursday and Friday, but has held up constructively as it tests the confluence of its prior pivot point and 10-day SMA.

LITE

LITE is another leading communications equipment stock that followed a similar pattern to VIAB last week, although its breakout was less powerful and its pullback was sharper. As LITE pulled back with the market last Thursday and Friday, it found support lower in its pattern near the confluence of its 21-day SMA and prior gap area.

AAOI

AAOI is an extremely powerful, volatile leader in the communications equipment group that continue to tighten up above short-term support in a constructive manner as the general market melted lower at the end of last week.

SATS

Extremely heavy upside volume has been accompanying SATS up the right side of its current base over the last couple of weeks. Watching for SATS to continue up the right side of its base and ultimately break out again.

SNDK

SNDK and WDC in the chart below are the last two big leaders in the memory group to hold up constructively above key support at their 50-day SMAs. The sharp sell-off in Micron over the last week and a half has weighed heavily on the group. I'm watching to see if these two can manage to hold their 50-day SMAs.

WDC

Watching WDC along with SNDK above to see if they can hold their 50-day SMAs despite continued weakness in Micron and the rest of the group.

SEDG

Energy tech leader SEDG has ignored the major indexes over the last few weeks and formed a bull flag above its 10-day SMA as it now sits just a hair below the next significant pivot point on its way higher.

SOLS

SOLS has bin building a constructive-looking base since its last earnings report and looks like it's setting up to move higher from here. Check out that relative strength line at new all-time highs, well ahead of its price.

DHT

Leading oil tanker stock DHT has been forming a constructive base for the last month, the way it is beginning to tighten up above short-term support is a clue that it may be setting up to head higher soon. Watching for a breakout above the declining tops trend line and consolidation pivot marked in the chart below.

FRO

FRO is another leading oil tanker stock and like DHT, it too has been forming a constructive base for the last month, the way it is beginning to tighten up above short-term support is a clue that it may be setting up to head higher soon. Watching for a breakout above the declining tops trend line and consolidation pivot marked in the chart below.

SQM

Leading fertilizer stock SQM exhibited tremendous strength on Friday as it exploded through significant overhead on heavy volume. A constructive pull back to key support would be ideal before continuing higher from here.