The TML Report February 10, 2026 – NASDAQ Struggles Below Key Resistance

Market Overview

The NASDAQ Composite continued to struggle below significant resistance this afternoon. Meanwhile, the Dow Jones carved out another new all-time high, and the S&P 500 and Russell 2000 aren’t far behind. This continued divergence makes it very difficult to commit capital in either direction.

Typically, when the major indexes are giving mixed signals, I look to the health and breadth of the market’s leadership for clues. Unfortunately, the leaders are sending mixed signals as well. There are numerous extended leaders that have been moving higher since the lows in April and appear to need time to correct/consolidate/base-build at a bare minimum.

Furthermore, there aren’t currentlyany leading groups of traditional growth names setting constructively up right now. So it is not obvious where the money will go assuming that it continues to come out of the already extended leaders.

The moral of the story is the deck is NOT hot, especially for position traders, looking to take concentrated positions in just a few names. So, minimal exposure is ideal until things improve, even if that means cash.

Indexes

QQQ

The Nasdaq continues to struggle below a significant level of resistance.

SPY

The S&P 500 looks much better than the NASDAQ, trading above all of its key moving averages and just slightly below prior all-time highs.

IWM

Just like the S&P 500, the Russell 2000 is in much better shape than the NASDAQ, trading above all of its key moving averages and just slightly below prior all‑time highs.

DIA

The Dow Jones remains the strongest major index of the bunch, making new all-time highs for the third session in a row today.

Focus List

AAPL

AAPL is forming a constructive handle area of a potential cup-and-handle base. watching for a breakout from here.

SNDK

Watching SNDK to see how it handles its 21-day SMA and the highs of a prior consolidation. It could certainly use some time to breathe.

LRCX

Watching for LRCX to continue to hold its 21-day SMA and move up and out of its current three days tight consolidation above this key moving average.

ASML

ASML and LRCX go hand in hand in terms of their technologies, so it isn't surprising to see their charts shape up in a similar manner. Like SNDK, they have both already had major upside moves and could use some time to rest.

ONTO

ONTO looks like it could use a pullback in the short-term, but it appears as if it's setting up to break out. Zoom out and it's easy to see that ONTO is working on a 'Green Line Breakout,' on its monthly chart.

SKYT

watching SKYT for a breakout above its 10-day SMA and declining tops trend line.

APLD

Watching APLD for a re-breakout to new all-time highs.

BE

Watching the high of BE's prior consolidation as a potential entry area.

STRL

Watching STRL for constructive weakness for a potential entry.

PACS

Watching PACS for an entry area versus key support on constructive weakness, in expectation of a breakout to new all-time highs in the near future.