The TML Report March 13th, 2026 – Continued Weakness

Market Overview

The major indexes weakened further on Friday. The health and breadth of leading growth stocks also deteriorated.

The S&P 500 undercut the low of its rally, resetting the count. The NASDAQ managed to hold above the low of its rally, but only by a hair. The 200-day SMA is the next significant support level for the major indexes.

Other than oil and gas stocks, which still have a solid bid due to geopolitical concerns, the strongest names are in defensive sectors such as consumer staples and utilities.

The list below is nothing more than a handful of stocks showing still relative strength, despite a weak general market; however, as you will see below, other than the memory stocks, there is very little to speak of in terms of groups of traditional growth stocks forming sound bases.

Until we see confirmation of a new uptrend, minimal exposure is recommended. Continue updating your watch lists, make sure your alerts are set, and be ready for anything.

Indexes

QQQ

The NASDAQ sold off again Friday and closed near the bottom of its range for the day; however, it held above its key 200-day SMA and low of its rally which started five days ago.

SPY

Action on the S&P 500 was almost identical to the NASDAQ on Friday. The only difference was the S&P undercut and closed below the low of its rally, which reset the count.

IWM

After stalling at its 65-day EMA last Tuesday, the Russell 2000 sold off into the end of the week, although it is still holding up above the low of its rally as well as its 200-day SMA.

DIA

The Dow followed an extremely similar pattern to the S&P 500 last week and closed in a similar position, below the low of its rally and slightly above its 200-day SMA.

Focus List

SNDK

SNDK is the leader among the memory stocks, which has now has formed a constructive-looking base and appears set up to move higher.

MU

Leading memory stock MU has set up in a very similar manner to SNDK, and also appears about ready to continue higher.

WDC

WDC is another leader in the memory group, which has formed a constructive base over the last couple months and looks like it's setting up to head higher.

STX

STX has formed a very similar pattern to WDC, and it too looks like it's setting up to move higher.

CIEN

Leading communications equipment stock, CIEN rallied powerfully after finding support just above its key 50-day SMA last week and has moved sideways in a tight range above its short-term moving averages over the last four days. It looks like it's setting up to move higher; however, this is a volatile name, and many stocks in the group are extended and look like they could use some time to move sideways. Ideally, CIEN could use some time to consolidate as well before ultimately making new highs from here.

VRT

If the market were in an uptrend, VRT has pulled back constructively to an area where it could be purchased with tight, logical stops at key support.

NBIS

NBIS exhibited extreme relative strength last week. Watching the consolidation pivot marked on the chart below for potential entry.

NE

Leading offshore drilling contractor NE has moved sideways in a constructive mannner into its short-term moving averages, and appears to be setting up to break out from here.

VAL

VAL is a leading offshore drilling contractor that has formed a similar pattern to NE and both appear to be setting up to move higher, assuming the price of oil ultimately continues higher.

CAVA

CAVA has exhibited clear relative strength over the last several weeks as the market has weakened and appears to be setting up to break out from here.

NKTR

NKTR is one of many smaller, risky biotech stocks that appears to be setting up to break out.