Aug 26, 2026 · 32 min
Software stocks regain leadership as Nasdaq tests support
Stocks Bide Time Ahead Of Earnings Crush: Exelixis; Dynatrace, Zeta Global In Focus
The episode weighs whether improving software action can offset a Nasdaq at a key technical level before major technology earnings.
- 1The Nasdaq approaches its 50-day moving average while mild distribution and resilient small caps keep the market constructive.
- 2Dynatrace and Zeta Global offer distinct software setups as Salesforce, CrowdStrike, and Okta signal broader sector strength.
- 3NVIDIA’s upcoming results could determine whether software leadership holds or semiconductor weakness resumes weighing on technology stocks.
Don't miss
The hosts connect improving software breadth with the question of whether NVIDIA’s results can sustain technology leadership.
The brief
Alissa Coram and Ken Shreve assess modest index declines as the Nasdaq tests its 50-day moving average, balancing the risk of deterioration against mild distribution and resilient small caps.
Software action is improving: Salesforce’s after-hours strength and a reversal in the IGV ETF contrast with semiconductor weakness, while small caps remain near their highs.
Dynatrace’s handle and strong post-earnings action put it near a potential entry, while Zeta Global’s orderly pullback above its breakout area offers an alternate setup.
Exelixis is forming the right side of a biotech base, with accumulation and a shakeout supporting the case as its kidney-cancer drug franchise and growth prospects come into focus.
A lightning round covers strong reactions in CrowdStrike and Okta alongside mixed moves in Pure Storage, HP, and Nutanix, before NVIDIA’s results become the test for technology leadership.
What was said on this episode
18 statements · 12 positive · 3 negative · 1 mixed · 2 neutral
The Nasdaq is currently finding support after pulling back from highs.
“the NASDAQ after a pullback off highs is just getting some support here”
Listen at 2:43
A Nasdaq bounce after the pullback would offer an ideal index buying opportunity.
“If we get a bounce, that's almost... One of the more ideal buying opportunities and setups that you can have for an index, an uptrend”
Listen at 3:32
Nasdaq deterioration below 26,000 would be negative for technology stocks.
“if we do see more deterioration below that 50-day moving average, that round number of 26,000, that would not be good for the tech trade”
Listen at 3:45
The S&P 500 currently shows greater relative strength than the Nasdaq.
“S&P 500 showing more relative strength at this point than the NASDAQ”
Listen at 4:44
Small-cap stocks are showing strong relative strength and remain near highs.
“small caps showing a lot of relative strength in the market here, holding near highs”
Listen at 9:19
Chip stocks are currently struggling overall.
“overall, chip stocks are really struggling”
Listen at 11:54
Software stocks are currently showing better market action than chips.
“software looking better”
Listen at 12:24
Dynatrace is among the higher-quality enterprise software stocks.
“I do look at Dynatrace as one of the better quality enterprise software stocks”
Listen at 14:32
Dynatrace may break out if the Nasdaq begins advancing strongly.
“I think this one has a chance of breaking out if the NASDAQ can, you know, can start powering higher here”
Listen at 14:51
A Zeta pullback to its 21-day line would return it to the buy zone.
“if it does, it's going to pull back into that buy zone”
Listen at 15:55
Zeta is a fundamental leader within enterprise software.
“this is a fundamental leader as well in the enterprise software group”
Listen at 16:49
Software stocks currently contain much of the market’s relative strength.
“software stocks are kind of saying, look at me right now. This is where the relative strength is in the market”
Listen at 17:27
Semiconductor stocks are currently difficult investments based on price and volume.
“semiconductor stocks in general are just a little too challenging right now”
Listen at 17:36
Exelixis is forming a setup for a possible breakout attempt.
“Excelexis is setting up for a possible breakout try”
Listen at 20:29
CrowdStrike and Okta continue to outperform technology stocks.
“these names are still... outperforming here”
Listen at 23:28
Aggressive traders should consider buying some earnings gaps.
“if traders want to be more aggressive, go after some of these earnings gaps”
Listen at 24:00
NVIDIA has likely grown into its valuation after sustained earnings growth.
“NVIDIA probably has finally grown into its valuation a little bit”
Listen at 28:32
NVIDIA’s near-term direction depends on whether it bounces from its 50-day average.
“It's kind of do or die time for NVIDIA here. It's either going to bounce off that 50-day or not.”
Listen at 29:05
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.