Oct 29, 2026 · 30 min
Software weakness sends Nasdaq lower as stock setups diverge
Software Carnage Sparks Nasdaq Sell-Off: Eli Lilly, eBay, Dollar Tree In Focus
The episode maps a broad technology sell-off against selective opportunities in pharmaceuticals, retail and healthcare while weighing AI spending and cash-flow risks.
- 1Nasdaq weakness reflects heavy software, cybersecurity and semiconductor selling, with support near 26,000 becoming a key market test.
- 2Eli Lilly, eBay and Dollar Tree show how strong earnings reactions can create distinct breakout, rebound and buy-point setups.
- 3Amazon, Alphabet and Intel underscore investor concerns about AI spending, capital expenditures, cash flow and broader chip weakness.
Don't miss
Eli Lilly surges after earnings, prompting discussion of a potential pullback entry near the 10-day moving average and $1,300.
The brief
Alissa Coram and Ken Shreve open with a sharp Nasdaq decline led by software, cybersecurity and semiconductor weakness, then frame the day around market breadth and support levels.
The Nasdaq’s rejection at its 50-day moving average contrasts with the S&P 500’s relative resilience, while the 26,000 area emerges as an important support test.
Alphabet’s 13% earnings-related drop puts negative cash flow and heavy AI spending at the center of the debate, showing how investment intensity can overwhelm strong technology fundamentals.
Eli Lilly breaks out after earnings, with a potential pullback entry near its 10-day moving average and $1,300; eBay rebounds, while Dollar Tree clears a handle buy point above $130.
After-hours moves sharpen the risk picture: Amazon faces questions on AWS, AI spending and cash flow, Intel sells off amid chip weakness, and CareDX provides a contrasting healthcare leadership example.
What was said on this episode
20 statements · 14 positive · 5 negative · 1 neutral
Nasdaq remains below moving averages and likely needs additional repair time.
“NASDAQ is still stuck underneath its moving averages here and looks like it's going to need a little more repair time”
Listen at 3:13
Shopify’s pullback appears normal rather than unusually damaging.
“Shopify's pullback today looked very normal, just a nice little pullback to the 21-day moving average.”
Listen at 5:12
Fortinet currently appears technically damaged.
“kind of damaged goods at this point.”
Listen at 6:07
Palo Alto Networks is not currently a broken stock.
“I wouldn't call Palo Alto a broken stock.”
Listen at 7:11
Undercuts can create favorable shakeout opportunities.
“these undercuts can present... wonderful shakeout opportunities.”
Listen at 9:06
Market undercuts can precede rallies and follow-through days.
“they can also unleash rallies and follow through days when they're least expected.”
Listen at 9:23
Microsoft is currently proving to be a technical market leader.
“This one is proving itself one of the leaders at this point and technically still looks quite strong here.”
Listen at 13:58
A Lilly pullback near $1,300 could offer an acceptable entry point.
“close to that $1,300 level is a perfectly palatable entry point here.”
Listen at 15:10
Eli Lilly’s earnings power remains intact.
“Lilly is proving that their earnings power is still intact.”
Listen at 15:31
Eli Lilly is executing well with its weight-loss drugs.
“Eli Lilly still executing well here and doing well with their weight loss drugs.”
Listen at 17:24
Jamie Iannone has rejuvenated and refocused eBay.
“he's really engineered. He's really kind of rejuvenated eBay into a different company, has them refocused.”
Listen at 18:54
eBay appears to be in the early stages of a market move.
“nice earnings here and, you know, in the early stages of making a move, it looks like.”
Listen at 20:05
Dollar Tree’s current chart setup is actionable.
“I think it's actionable.”
Listen at 21:04
Dollar Tree passed a buy point and currently looks favorable.
“Dollar Tree passing a buy point today. And, yeah, I think it looks pretty good here.”
Listen at 21:45
Amazon will be evaluated on AWS growth, spending, and cash flow like other hyperscalers.
“they're going to be graded, again, the same way as these other hyperscalers.”
Listen at 23:45
Amazon’s initial earnings reaction is negative.
“a negative reaction, you know, so far.”
Listen at 24:13
Sandisk remains in a downtrend below significant resistance levels.
“this is, yeah, this is a stock that, yeah, on a downtrend and still is going to have some overhead supply and below some key resistance levels.”
Listen at 25:04
Intel has returned to growth mode under its new CEO.
“Intel is certainly back in growth mode with a new CEO”
Listen at 26:40
Intel’s new growth initiatives are costly to implement.
“it's also quite costly for this company, too, as they put these initiatives into place.”
Listen at 26:58
The medical-services group has recently performed strongly.
“there's that medical services group, which has been doing very well.”
Listen at 28:24
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.
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