The TML Report March 31st, 2026 – Major Indexes Bounce

Market Overview

The Nasdaq and S&P 500 rallied powerfully today, making tomorrow the second day of the current rally on both major indexes. Both indexes have a lot of work to do and a ton of overhead resistance to push through from current levels.

While I wouldn’t necessarily consider the market’s leadership healthy and broad at this point, the fact that there are still groups of traditional leading growth stocks that haven’t completely broken down with the market is notable.

Normally, when the indexes look like this, you are hard-pressed to find a decent-looking traditional growth stock. To the best of my memory, this extreme bifurcation is unprecedented.

Personally, I find this environment difficult to operate in. It’s almost impossible for me to maintain conviction in my positions when the market is in a downtrend below all its moving averages. However, if you are a swing trader and in tune with the leaders that are working in the current environment, just make sure you manage risk.

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

Indexes

QQQ

The Nasdaq rallied powerfully today and closed near session highs on heavy volume; however, it has significant overhead resistance to push through from here as we move to day two of its current rally attempt.

SPY

The S&P 500 has followed a very similar pattern to the Nasdaq over the last couple of weeks, and it is going on day two of its current rally as it pushes into significant overhead resistance, also.

IWM

The Russell finally rolled over and made a lower low along with the other major indexes, and closed below its 200-day SMA; however, it gapped up this morning, opening back above this key long-term moving average, and rallied with the rest of the market.

DIA

The Dow continues to follow a similar pattern to the S&P 500, only its ranges aren't as wide and it's a bit stronger.

Focus List

GLW

GLW has formed a constructive consolidation over the last several weeks and continues to trade above key short-term support. It appears to be setting up to head higher from here, despite an extremely weak general market environment.

CIEN

Even as the market was getting hammered last week, CIEN pulled back in an orderly fashion to key support at the confluence of a prior high and its 21-day SMA.

LITE

LITE continues to form a constructive base above key short-term support and appears to be setting up to move higher from here.

VIAV

VIAV continues to form a constructive base above key short-term support and appears to be setting up to move higher from here.

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 continues to trade above its 50-day SMA, however, not by much, unlike its peers WDC and STX, which are struggling a bit below. Right now, memory stocks have their back against the ropes, with MU leading the way lower.

SEDG

SEDG continues to build a volatile bull flag above its 10-day SMA despite all the weakness and volatility in the broader market.

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.

DHT

DHT pushed above its declining trend line and 21-day SMA; however, its rally faded before the close. Nevertheless, it is holding up in a tight range above key short-term support and could easily break above its consolidation pivot marked on the chart below.

FRO

FRO shaped up in a very similar manner to DHT above, only it closed stronger today. I am watching for a breakout above its consolidation pivot marked on the chart below.

SQM

SQM pulled back to the confluence of its prior pivot and short-term moving averages. With a bit more time, I'd expect it to continue up the right side of its base and make new all-time highs.