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The escalating conflict between India and Pakistan could be offering the world a first real glimpse into how advanced Chinese military technology performs against proven Western hardware – and Chinese defense stocks are already surging.

Shares of China’s AVIC Chengdu Aircraft rose 40% this week, as Pakistan claimed it used AVIC-produced J-10C jets to shoot down Indian fighter jets – including the advanced French-made Rafale – during an aerial battle on Wednesday.

India has not responded to Pakistan’s claims or acknowledged any aircraft losses. When asked about the involvement of Chinese-made jets, a spokesperson for China’s Foreign Ministry said on Thursday he was not familiar with the situation.

Still, as Pakistan’s primary arms supplier, China is likely watching intently to find out how its weapon systems have and potentially will perform in real combat.

A rising military superpower, China hasn’t fought a major war in more than four decades. But under leader Xi Jinping, it has raced to modernize its armed forces, pouring resources into developing sophisticated weaponry and cutting-edge technologies.

It has also extended that modernization drive to Pakistan, long hailed by Beijing as its “ironclad brother.”

Over the past five years, China has supplied 81% of Pakistan’s imported weapons, according to data from the Stockholm International Peace Research Institute (SIPRI).

Those exports include advanced fighter jets, missiles, radars and air-defense systems that experts say would play a pivotal role in any military conflict between Pakistan and India. Some Pakistan-made weapons have also been co-developed with Chinese firms or built with Chinese technology and expertise.

“This makes any engagement between India and Pakistan a de facto test environment for Chinese military exports,” said Sajjan Gohel, international security director at the Asia-Pacific Foundation, a think tank based in London.

Chinese and Pakistani militaries have also engaged in increasingly sophisticated joint air, sea and land exercises, including combat simulations and even crew-swapping drills.

“Beijing’s long-standing support for Islamabad – through hardware, training, and now increasingly AI-enabled targeting – has quietly shifted the tactical balance,” said Craig Singleton, a senior fellow at the US-based Foundation for Defense of Democracies.

“This isn’t just a bilateral clash anymore; it’s a glimpse of how Chinese defense exports are reshaping regional deterrence.”

That shift – brought into sharp focus by rising tensions between India and Pakistan following a tourist massacre in Kashmir – underscores a broader geopolitical realignment in the region, where China has emerged as a major challenge to American influence.

India and Pakistan have gone to war over Kashmir three times since their independence from Britain in 1947. During the height of the Cold War, the Soviet Union backed India, while the United States and China supported Pakistan. Now, a new era of great-power rivalry looms over the long-running conflict between the nuclear-armed South Asian rivals.

Despite its traditional policy of nonalignment, India has drawn ever closer to the US, as successive American administrations courted the rising South Asian giant as a strategic counterweight to China. India has ramped up arms purchases from America and its allies, including France and Israel, while steadily reducing its reliance on Russian weaponry.

Meanwhile, Pakistan has deepened ties with China, becoming its “all-weather strategic partner” and a key participant in Xi’s flagship global infrastructure project, the Belt and Road Initiative. According to SIPRI’s data, the US and China each supplied about one-third of Pakistan’s imported weapons in the late 2000s. But Pakistan has stopped buying American arms in recent years and increasingly filled its arsenal with Chinese weapons.

Siemon Wezeman, a senior researcher in the SIPRI Arms Transfers Program, noted that while China has been an important arms supplier to Pakistan since the mid-1960s, its current dominance largely comes from stepping into a vacuum left by the US.

More than a decade ago, the US accused Pakistan of not doing enough to fight “terrorists” – including Taliban fighters – that it said were operating from or being supplied in Pakistan. Wezeman said that added to Washington’s existing frustrations over Islamabad’s nuclear program and lack of democracy.

“(The US) finally found India as an alternative partner in the region. As a result, (it) more or less cut Pakistan off from US arms,” he added. “China’s arms supply on the other hand significantly increased – one can say that China used the opportunity to show itself as the only real friend and ally of Pakistan.”

China has expressed regret over India’s military strikes against Pakistan and has called for calm and restraint. Before the latest escalation, Chinese Foreign Minister Wang Yi expressed support for Pakistan in a phone call with his counterpart, calling China Pakistan’s “ironclad friend.”

Military showdown

With Pakistan armed largely by China and India sourcing more than half of its weapons from the US and its allies, any conflict between the two neighbors could effectively be a showdown between Chinese and Western military technologies.

After weeks of rising hostilities following the killing of 26 mostly Indian tourists at the hands of gunmen at a scenic mountain spot in Indian-administered Kashmir, India launched missile strikes early on Wednesday morning, targeting what it said was “terrorist infrastructure” in both Pakistan and Pakistan-administered Kashmir.

Many analysts believe the missiles and other munitions were fired by India’s French-made Rafale and Russian-made Su-30 fighter jets.

Pakistan, meanwhile, touted a great victory by its air force, claiming that five Indian fighter jets – three Rafales, a MiG-29 and a Su-30 fighter – were shot down by its J-10C fighters during an hour-long battle it claimed was fought by 125 aircraft at ranges over 160 kilometers (100 miles).

“(It) is now being characterized as the most intense air-to-air combat engagement between two nuclear-armed nations,” said Salman Ali Bettani, an international relations scholar at Quaid-i-Azam University in Islamabad. “The engagement represented a milestone in the operational use of advanced Chinese-origin systems.”

India has not acknowledged any aircraft losses, and Pakistan has yet to provide evidence to support its claims. But a French Defense Ministry source said at least one of India’s newest and most-advanced warplanes – a French-made Rafale fighter jet – was lost in the battle.

“If … confirmed, it indicates that the weapon systems at Pakistan’s disposal are, at the minimum, contemporary or current compared to what Western Europe (especially France) offers,” said Bilal Khan, founder of Toronto-based defense analysis firm Quwa Group Inc.

Despite the absence of official confirmation and hard proof, Chinese nationalists and military enthusiasts have taken to social media to celebrate what they see as a triumph for Chinese-made weapon systems.

Shares of China’s state-owned AVIC Chengdu Aircraft, the maker of Pakistan’s J-10C fighter jets, closed 17% higher on the Shenzhen exchange on Wednesday, even before Pakistan’s foreign minister claimed the jets had been used to shoot down India’s planes. Shares in the company rose an additional 20% on Thursday.

The J-10C is the latest version of China’s single-engine, multirole J-10 fighter, which entered service with the Chinese air force in the early 2000s. Featuring better weapon systems and avionics, the J-10C is classified as a 4.5-generation fighter – in the same tier as the Rafale but a rung below 5th-generation stealth jets, like China’s J-20 or the US F-35.

China delivered the first batch of the J-10CE – the export version – to Pakistan in 2022, state broadcaster CCTV reported at the time. It’s now the most advanced fighter jet in Pakistan’s arsenal, alongside the JF-17 Block III, a 4.5-generation lightweight fighter co-developed by Pakistan and China.

The Pakistan Air Force (PAF) also operates a larger fleet of American-built F-16s, one of which was used to shoot down a Soviet-designed Indian fighter jet during a flare-up in 2019.

But the PAF’s F-16s are still stuck in an early-2000s configuration – far behind the upgraded versions currently offered by the US – while the Chinese-made J-10CEs and JF-17 Block IIIs feature contemporary technologies such as active electronically scanned array (AESA) radars, Khan said.

“So, the F-16s are still a major piece to any PAF-led reprisal, but not the central or indispensable one,” he said.

Senior Col. (ret) Zhou Bo, senior fellow at Tsinghua University’s Center for International Security and Strategy in Beijing, said if Chinese-made J-10Cs were indeed used to shoot down the French-made Rafales, it would be “a tremendous boost of confidence in Chinese weapon systems.”

Zhou said it would “really raise people’s eyebrows” particularly given China has not fought a war for more than four decades. “It will potentially be a huge boost for Chinese arm sales in the international market,” he said.

‘A powerful advertisement’

The United States remains the world’s largest arms exporter, accounting for 43% of global weapons exports between 2020 and 2024, according to data from SIPRI. That’s more than four times the share of France, which ranks second, followed by Russia.

China ranks fourth, with nearly two-thirds of its arms exports going to a single country: Pakistan.

Khan, the defense analyst in Toronto, agreed the downing, if confirmed, would go a long way in promoting China’s defense industry saying there would likely be interest from “powers in the Middle East and North Africa” who typically can’t access “the most cutting-edge Western technology.”

“With Russia set back as a result of its invasion of Ukraine, I’m sure the Chinese have begun pushing hard at Moscow’s traditional markets – e.g., Algeria, Egypt, Iraq, and Sudan – to secure big-ticket sales.”

Experts in Pakistan and China say the J-10Cs deployed by the Pakistan Air Force are likely to have been paired with the PL-15, China’s most advanced air-to-air missile – which has a reported beyond-visual-range of 200-300 kilometers (120-190 miles). The known export version has a reduced range of 145 kilometers (90 miles).

Last week, amid spiraling tensions, the Pakistan Air Force released a three-minute video showcasing its warplanes. It featured the JF-17 Block III armed with PL-15 missiles, describing them as “PAF’s potent punch”.

“From China’s perspective, this is essentially a powerful advertisement,” Antony Wong Dong, a Macau-based military observer, said of the Pakistan claims.

“It will shock even countries like the United States — just how strong is its opponent, really? This is a question that all countries potentially looking to buy fighter jets, as well as China’s regional rivals, will need to seriously reconsider: how should they face this new reality?”

But some experts have expressed caution. India’s losses, if confirmed, could stem more from poor tactics and planning by the Indian Air Force than from the perceived advancements in Chinese weapons.

“If reports of India losing multiple jets holds up, it would raise serious questions about the IAF’s readiness, not just its platforms. The Rafales are modern, but warfighting is about integration, coordination, and survivability — not just headline acquisitions,” said Singleton, the analyst at the Foundation for Defense of Democracies.

What’s also not known is what intelligence India had on the PL-15.

If, for instance, it believed Pakistan only possessed the shorter-range export version, Indian aircraft might have lingered in vulnerable areas.

Rules of engagement may also have prevented Indian pilots from firing first, or firing back against Pakistani aircraft, according to Fabian Hoffman, a defense policy research fellow at the University of Oslo.

In such cases, Indian misjudgments may have made the Pakistani weaponry look more effective, Hoffman wrote on his blog.

Experts also note that India’s strikes successfully hit multiple targets in Pakistan – suggesting its missiles penetrated Pakistani air defenses, which are armed with Chinese surface-to-air missiles, including the long-range HQ-9B.

“If Chinese-origin radar or missile systems failed to detect or deter Indian strikes, that’s (also) bad optics for Beijing’s arms export credibility,” said Gohel, the defense expert in London.

This post appeared first on cnn.com

Russian President Vladimir Putin has taken center stage at Russia’s Victory Day parade on Friday, surrounding himself by friendly world leaders in a highly choreographed show designed to show the Western world that Russia is far from isolated.

Watching as thousands of troops marched across Moscow’s Red Square, Putin stood next to his guest of honor, the Chinese leader Xi Jinping.

The annual May 9 commemoration of the Soviet Union’s victory over Nazi Germany in World War II is one of the most important days in Putin’s calendar, and this year marks its 80th anniversary.

Traditionally, the day has been dedicated to the estimated 25 million to 27 million Soviet soldiers and civilians who died during the conflict. But since Russia launched its full-scale invasion of Ukraine in 2022, Victory Day has become more of a propaganda exercise, with Putin framing the war against Russia’s much smaller neighbor as a continuation of what Russians call the Great Patriotic War.

And while celebrations were muted in the past three years, Russia has not held back this time.

Putin and Xi were joined by scores of other world leaders, most of whom had the black and orange ribbon of Saint George pinned to their lapels. Many of them have also sent troops to march in the parade, alongside Russian servicemen.

The Russian military symbol dates back to imperial times, but it has become hugely controversial in recent years, having been coopted as a sign of support for Moscow’s aggression against Ukraine. It has been banned in a number of countries.

Brazil’s President Luiz Inácio Lula da Silva, the Egyptian President Abdel Fattah el-Sisi, Serbia’s President Aleksandar Vucic, Venezuela’s President Nicolas Maduro and Mahmoud Abbas, the President of the Palestinian Authority were all in attendance, marking a significant upgrade to last year’s guestlist which was limited to a handful of delegations from post-Soviet states, Cuba and a few other countries.

Robert Fico, the Prime Minister of Slovakia, a European Union member state, was also in Moscow on Friday. His appearance side by side with Putin was particularly significant given the EU’s tough stance against Russia over its aggression against Ukraine.

Unilateral ceasefire, breached multiple times

Last month, Putin declared a three-day unilateral ceasefire around the anniversary – an announcement that was promptly rejected by Ukraine.

“The Kremlin’s proposal for a three-day truce is not about peace, but about ensuring the safe conduct of the parade in Moscow. This is political manipulation,” Andriy Yermak, the head of the Ukrainian Presidential Office, said in a statement on Thursday.

Kyiv said that if Russia wanted a truce, it should sign up to the US proposal for a 30-day ceasefire that Ukraine has already agreed to. Russia has repeatedly refused this offer, despite multiple high-profile meetings with top US officials.

Kyiv said on Thursday that Russia had breached the ceasefire hundreds of times since it came into effect. Several civilians were killed and injured in guided bomb attacks against Ukrainian cities, Kyiv said.

Kyiv is openly indifferent to the smooth-running of Putin’s parade, saying that it “cannot be responsible for what happens on the territory of the Russian Federation” because of the war. Ukrainian President Volodymyr Zelensky said his country would not be “playing games to create a pleasant atmosphere to allow for Putin’s exit from isolation on May 9.”

In the run-up to the parade, Ukraine launched several drone attacks against the Russian capital, with authorities forced to shut down all four Moscow airports on Wednesday.

Estonia, Latvia and Lithuania also threw in some logistical complications for international parade-goers, shutting their airspaces to diplomatic planes traveling to Moscow. Several pro-Kremlin leaders were forced to reroute their journeys to Moscow to circumvent the Baltic states.

“In Latvian society, there is a clear and principled understanding that Russian propaganda and glorification of war crimes cannot be supported or encouraged … given this context, Latvia cannot grant diplomatic overflight permits for flights facilitating participation in the 9 May event,” the Latvian Foreign Ministry said in a statement on Thursday.

Slovak Prime Minister Robert Fico, one of the leaders affected by the closures, criticized the move, saying on Wednesday that it was “extremely disruptive.”

Serbian President Aleksandar Vucic was also forced to re-route after the Baltic states said he wouldn’t be allowed to enter their airspace. According to Serbian media, he ended up flying via Baku in Azerbaijan.

This post appeared first on cnn.com

For the first time in history, the majority of humans live in cities — spaces often defined by concrete, glass and a disconnect from the natural world. Access to nature is no longer guaranteed.

In 2020, Miles founded Nature Is a Human Right, a campaign advocating for daily access to green spaces to be recognized in the Universal Declaration of Human Rights. Frustrated by the slow pace of institutional change, Miles says she “lost faith in the top-down process.” So she took matters into her own hands. Her weapon? Not protest banners or petitions, but seeds and shovels.

She became a so-called guerrilla gardener — “Grassroots planting in a public place, with a purpose,” Miles explains. “Think of it like graffiti, but with wildflowers instead of spray paint.” This form of urban activism involves transforming neglected or overlooked spaces — cracks in pavements, roadside verges, abandoned lots — into mini-oases for people, pollinators and biodiversity.

What began during the Covid pandemic — when parks were shut and access to green space became scarce — grew into a weekly ritual. Miles and her neighbors would meet on Sunday mornings, armed with bulbs and trowels, planting in overlooked corners of the London Borough of Hackney.

Guerrilla gardening

In the UK, guerrilla gardening occupies a legal gray area: while planting on public land without permission is not technically lawful, authorities often turn a blind eye — so long as it doesn’t cause damage, obstruction or a public nuisance.

According to the Royal Horticultural Society, guerrilla gardeners should ensure their planting doesn’t inconvenience others and be careful to not restrict public access or create trip hazards. It’s also important that anything planted is removable, and that the roots won’t cause structural damage to sidewalks and buildings.

Guerrilla gardening dates back to the 1970s, when the Green Guerrillas, founded by Liz Christy in the US, transformed vacant lots into community gardens. The movement has since spread worldwide, from Ron Finley, the “Gangsta Gardener” in Los Angeles, to Ta Mère Nature in France, and the Ujamaa Guerrilla Gardening Collective in South Africa.

Miles has brought the underground movement into the spotlight on TikTok and other social media. Her upbeat videos demystify the process, showing everything from creating seed bombs to planting moss graffiti — a form of street art where living moss is used to create patterns or words on walls. “I wasn’t a gardener. I was learning as I went along,” she admits. “But I just wanted the streets to be greener.”

As Miles’ seeds grew, so did her online following. “Young people today are very awake to issues like climate change, inequality, and mental health,” Miles says. “Guerrilla gardening intersects with all of that. It’s something you can do with your own two hands and see the impact immediately.”

“A lot of activism can feel intangible,” she adds. “With guerrilla gardening, you see the results. It’s empowering.”

And it’s more than just symbolic: “It’s been shown that having access to green spaces is as vital to your mental and physical health as regular exercise and a healthy diet,” says Miles. “We need it around us. We need the phytoncides (compounds plants release into the air) that plants produce. The experience of having plants around us calms us.”

A study of 20,000 participants by the UK’s University of Exeter found that people who spent at least 120 minutes a week in green spaces reported significantly better physical health and psychological well-being than those who didn’t. For young children, access to green spaces has been linked to reduced hyperactivity and improved attention spans. Communities can benefit too: a US study showed that greening vacant lots can lead to lower crime rates.

Miles’ message is simple: anyone can get involved. “It’s spring now,” she continues. “Find native wildflowers, scatter them when it’s raining then you won’t even have to water them.” For those who want to go further, Miles has written a book on the subject and teaches a free four-week online course through the nonprofit Earthed, which has attracted over 300 participants. She advises gardening as a group — community is key.

Her vision is bold but refreshingly practical: “Why aren’t all our sidewalks lined with hedges?” says Miles. “Our buildings could be covered in plants. Our rooftops and bus stops could be buzzing with flowers. It’s a no-brainer.”

This post appeared first on cnn.com

A group of investors sued UnitedHealthcare Group on Wednesday, accusing the company of misleading them after the killing of its CEO, Brian Thompson.

The class action lawsuit — filed in the Southern District of New York — accuses the health insurance company of not initially adjusting their 2025 net earning outlook to factor in how Thompson’s killing would affect their operations.

On Dec. 3 — a day before Thompson was fatally shot — the company issued guidance that included net earnings of $28.15 to $28.65 per share and adjusted net earnings of $29.50 to $30.00 per share, the suit notes. And on January 16, the company announced that it was sticking with its old forecast.

The investors described this as “materially false and misleading,” pointing to the immense public scrutiny the company and the broader health insurance industry experienced in the wake of Thompson’s killing.

The group, which is seeking unspecified damages, argued that the public backlash prevented the company from pursuing ‘the aggressive, anti-consumer tactics that it would need to achieve’ its earnings goals.

‘As such, the Company was deliberately reckless in doubling down on its previously issued guidance,’ the suit reads.

The company eventually revised its 2025 outlook on April 17, citing a needed shift in corporate strategy — a move that caused its stock to drop more than 22% that day.

‘The company denies any allegations of wrongdoing and intends to defend the matter vigorously,’ a UnitedHealthcare spokesperson said in a statement.

Thompson’s fatal shooting on the streets of New York City in broad daylight sent shockwaves across the nation.

Luigi Mangione, the 27-year-old man accused of the killing, has pleaded not guilty to federal and state charges against him. The legal defense fund for Mangione surpassed the $1 million mark in donations on Tuesday.

This post appeared first on NBC NEWS

Krispy Kreme stock plunged 24% on Thursday morning after the doughnut chain said it is “reassessing” its rollout with McDonald’s and pulled its full-year outlook in part due to economic “softness.”

Krispy Kreme is not planning to launch its doughnuts in any additional McDonald’s locations in the second quarter, suspending a nationwide rollout. As of March 30, more than 2,400 of the burger chain’s roughly 13,500 domestic locations carried Krispy Kreme doughnuts.

“I remain confident in the long-term national opportunity, but we need to work together with them to identify levers to improve sales,” Krispy Kreme CEO Josh Charlesworth said.

Over the last year, Krispy Kreme shares have shed more than 70% of their value, dragging the company’s market value down to less than $600 million.

Truist downgraded the stock on Thursday from buy to hold.

“We are shocked by the speed at which the story fell apart,” Truist analyst Bill Chappell wrote. ”… We no longer have high conviction in management’s previously stated strategy and execution of these initiatives, and it will likely take several quarters before we or investors can regain confidence.”

The two restaurant companies announced more than a year ago that Krispy Kreme doughnuts would be sold in all McDonald’s U.S. locations by the end of 2026. The rollout began roughly six months ago.

While the beginning phases were promising, sales fell below projections, Krispy Kreme executives said on Thursday.

As consumers worry about the broader economy and a potential recession, they have been pulling back their spending at restaurants. McDonald’s reported a 3.6% decline in its U.S. same-store sales for the first quarter. McDonald’s CEO Chris Kempczinski said that the fast-food industry’s traffic fell as middle- and low-income diners visited restaurants less frequently.

For Krispy Kreme, profitability appears to be the key reason for slowing the rollout with McDonald’s.

“However, we are seeing that after the initial marketing launch demand dropped below our expectations requiring intervention to deliver sustainable, profitable growth,” Charlesworth told analysts on the company’s conference call.

“We are partnering with McDonald’s to increase sales by stimulating higher demand and cutting costs by simplifying operations,” he added. “At the same time, we are reassessing our deployment schedule together with McDonald’s as we work to achieve a profitable business model for all parties.”

Krispy Kreme reported a net loss of $33 million for the quarter ended March 30.

To supply all of McDonald’s U.S. restaurants, Krispy Kreme was investing in expanding capacity quickly, which weighed on profits. In the last year, the company has reported three quarters of net losses.

The company uses a “hub and spoke” model that lets it make and distribute its treats efficiently. Production hubs, which are either stores or doughnut factories, send off freshly made doughnuts every day to retail locations such as grocery stores and gas stations. Krispy Kreme is looking to prune its unprofitable locations, which could affect up to 10% of its U.S. network.

Krispy Kreme also pulled its 2025 outlook, citing “macroeconomic softness” and uncertainty around the schedule for the McDonald’s partnership.

This post appeared first on NBC NEWS

The S&P 500 ($SPX) wrapped up Tuesday just below its intraday midpoint and posted one of the narrowest ranges we’ve seen in the past two months. That’s a clear sign traders are reluctant to take major bets ahead of Wednesday’s 2:00 PM ET Federal Open Market Committee (FOMC) decision.

And honestly, this caution makes sense. If we look back at how the stock market has reacted following the first two FOMC meetings of 2025, there has been a mix of hesitation and sharp moves.

Below is an updated chart marking each FOMC date since 2024 alongside the S&P 500. After the late January meeting, the S&P 500 zig-zagged to marginal new highs over the next two weeks before the first of two sharp down legs unfolded.

FIGURE 1. FOMC DATES SINCE 2024.

Coincidence or not, the S&P 500 is trading at nearly the same price level now, six weeks later, as it was back then. So, how close are today’s prices compared to the close on March 18, the day before the last Fed meeting?

This close (see chart below):

FIGURE 2. THE S&P 500 IS TRADING VERY CLOSE TO LAST FOMC MEETING LEVELS.

The difference is that the index has been rallying for four weeks, starting from the pivot low on April 7, a month ago today. In March, the S&P 500 was trying to bounce after topping four weeks earlier on February 19. That bounce continued for a few more days before dominant down-trending price action took over.

But over the last few weeks, the dominant trend is definitely higher. So the big question now is: can this mini uptrend resume after this pause?

A Short-Term Setup to Watch

A few days ago, the 14-period relative strength index (RSI) on the two-hour chart grazed the 70-overbought level for the first time since late January (see chart below). Yes, it took a nearly 18% rally in a very short time frame for it to finally happen, but remember, the indicator was coming off its lowest level since the COVID lows. Modest 3–5% pops were enough to trigger overbought readings for much of 2024. Not this time.

As you know, overbought conditions never persist, especially in very short timeframes like this. However, if this rally has anything left in the tank, we’ll see the indicator hit overbought again soon. That may not happen in the next day or two, but if the market reacts negatively to today’s news, but a bid returns soon after, it could keep some of the bullish patterns we’ve been tracking in play. That’s just one scenario, but one we’ll be closely watching.

FIGURE 3. TWO-HOUR CHART OF THE S&P 500.

Bullish Patterns Still Intact

There are two bullish pattern breakouts still in play on the S&P 500 chart:

And barring a very extreme and negative reaction, the patterns will stay alive today, as well.

FIGURE 4. INVERSE HEAD-AND-SHOULDERS AND CUP WITH HANDLE PATTERNS.

FIGURE 5. INVERSE HEAD-AND-SHOULDERS PATTERN IN THE S&P 500.

FIGURE 6. CUP WITH HANDLE PATTERN IN THE S&P 500.

A Bright Spot: Utilities

The Utilities Select Sector SPDR Fund (XLU) was the first sector ETF (and one of the first of all the ETFs we track) to notch a new 50-day high, which it hit on Tuesday. On the weekly chart, it’s clear the ETF is now trying to leverage a multi-month bottoming formation.

This is especially notable because the formation has developed above two bullish pattern breakouts from 2024. Ironically, XLU’s first major breakout of 2024 happened around this time last year (late April), which set the stage for an extremely strong run, at least through late November.

The current snapback is important to watch, given how well XLU has recently capitalized on bullish breakouts. Some upside follow-through from here would also put the former highs back in the crosshairs.

FIGURE 7. WEEKLY CHART OF UTILITIES SELECT SECTOR SPDR (XLU).

Invesco Solar (TAN) Still Has Work to Do

Invesco Solar ETF (TAN) has been rallying since the April lows, much like nearly every ETF we track. On the daily chart, it’s been trying to leverage a bullish cup and handle pattern, a formation we’ve also seen emerge in many other areas. It’s coming off an extremely oversold condition, with its 14-week RSI undercutting 30 for just the third time since 2021. So TAN could see some additional upside from here.

But the ETF will need to do much more to materially improve its long-term technical picture. Nearly every rally has stalled near the key weekly moving averages, all of which continue to slope lower. Selling strength in TAN has been a highly effective strategy since it peaked in early 2021.

FIGURE 8. WEEKLY CHART OF INVESCO SOLAR ETF (TAN).

Bitcoin Holding Up

Bitcoin has held its breakout from two weeks ago quite well so far. The next upside target remains near 103k. Again, regardless of whether or not you follow crypto, seeing the bid continue is a bullish sign for risk appetite across different asset classes, especially equities.

Fun fact: Bitcoin topped a few weeks before the SPX, so it can be a useful leading indicator.

FIGURE 9. BITCOIN BREAKS OUT.

Ethereum Playing Catch-Up

While Ethereum’s extreme relative weakness vs. Bitcoin has continued, it too has rallied over the last few weeks. It’s now close to breaking out from a cup with handle formation. At the same time, it’s testing its now flat 50-day moving average.

The combination of a bullish breakout and a move through the 50-day moving average produced a very strong follow-through rally in November, something Ethereum will try to replicate.

FIGURE 10. ETHEREUM BREAKS ABOVE 50-DAY MOVING AVERAGE.

Final Thoughts

As we head into the Fed decision, we’re seeing a lot of cautious optimism in the charts. Key bullish patterns are still holding, sectors like Utilities are showing strength, and crypto is flashing green.

The next few sessions will be important. If we get a knee-jerk reaction to the Fed, but buyers step in quickly it could set the stage for the next leg higher in this rally.

Stay alert.



Frank Cappelleri is the founder and president of CappThesis, an independent technical analysis newsletter firm. Previously, Frank spent 25 years on Wall Street, working for Instinet, the equity arm of Nomura and Smith Barney. Frank’s various roles included being an equity sales trader, technical analyst, research sales specialist and desk strategist. Frank holds the CFA and CMT designations and is a CNBC contributor.

https://cappthesis.com

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With all eyes and ears on this week’s Fed meeting, it’s worth taking a big step back to reflect on conditions related to momentum, breadth, and leadership.  And while the rally of the early April lows has been significant, the S&P 500 and Nasdaq 100 now face considerable resistance at the 200-day moving average.

With that backdrop in mind, here are three charts we’re watching that have not yet signaled an “all clear” for risk assets.

Our Market Trend Model Remains Medium-Term Bearish

Long-time market newsletter author Paul Montgomery used to point out that the most bullish thing the market can do is go up. The way we make this simple assessment of market trend is using our Market Trend Model.

As of last Friday’s close, our Market Trend Model shows a short-term bullish signal, given the strength off the early April low. The medium-term model, however, remains bearish, as the recent bounce is still defined as a bear market rally. If the S&P 500 can push above its own 200-day moving average, that would likely be enough to move the medium-term model to the bullish side for the first time since October 2023.

Over the years, I’ve found the Market Trend Model to be a fantastic way of separating the short-term “flickering ticks” of day-to-day market movements from the more significant shifts in sentiment from bullish to bearish. And by staying on the right side of this model, I’ve been able to capture most of the market upside, and more importantly, avoid disastrous bear phases!


Don’t miss our daily market recap show, CHART THIS with David Keller, CMT. We’ll track how these charts evolve through the course of the week, highlight key stocks on the move, and boil down the most important market themes from a technical perspective. Join us live every trading day at 5pm ET, or catch the replay on our YouTube channel!


Will Key Stocks Breakout Above the 200-Day?

While the S&P 500 and Nasdaq 100 are testing their own 200-day moving averages, many S&P 500 members are in a very similar position. At the April 2025 market low, less than 10% of the S&P 500 stocks were above their 50-day moving average. That reading has reached almost 60% this week as literally half of the S&P 500 members have regained this short-term moving average.

While the bottom panel shows the percent of stocks above the 50-day moving average, the next panel up displays the percent of S&P 500 members above their 200-day moving average. While this has also increased over the last month, it still remains below 50%.

The countertrend rally in March 2025 saw this indicator go up to 50% and then reverse lower, providing a warning sign of further lows to come. Will we see a similar stall in this indicator in May 2025? If so, that could indicate a retest of the April low. On the other hand, if both of these gauges push above 50%, then investors should brace for much further upside for the S&P 500.

Offense Needs to Dominate Defense

Leadership themes could become incredibly important, as many leading growth stocks remain in a position of technical weakness. And unless the top growth stocks go into full rally mode, it’s hard to imagine meaningful upside for the S&P 500 and Nasdaq 100. One way to consider this relationship is to chart the ratio between Consumer Discretionary and Consumer Staples.

The top panel shows the cap-weighted sector ETFs, and the bottom panel shows the same ratio using equal-weighted sector ETFs. Both of these ratios made a major peak in Q1 2025, and both of them trended lower into a mid-April low. Over the last three weeks, we’ve seen a dramatic upside reversal in these offense-defense rations, indicating a rotation from defensive to offensive positioning.

Quite simply, I don’t see the major averages pushing higher unless these ratios continue to gain ground to the upside. We have observed strength in some Consumer Staples names, from Kroger (KR) to Coca Cola (KO), but it would take charts like Amazon (AMZN) making a significant move higher to give the S&P 500 any real chance of pushing above its own 200-day moving average. This ratio moving higher would confirm that “things you want” are outperforming “things you need”, and that has bullish implications for risk assets.

Investors are facing more uncertainty than ever as we brace for the latest Fed announcement, the newest tariff headline, and mixed results in the form of economic indicators. By watching charts like these, and keeping a watchful eye on the updated Market Summary page, StockCharts users can approach these markets with confidence.

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!


David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

In this video, Joe shares how to trade MACD signals using multiple timeframes, and how to spot stock market pullback setups that can help to pinpoint a great entry off a low. He then reviews sector performance to identify market leadership, covers key chart patterns, and discusses a looming bearish signal on QQQ and IWM. The video wraps with technical analysis on popular viewer-submitted stock symbols, including REAL, PSTG, and more.

The video premiered on May 7, 2025. Click this link to watch on Joe’s dedicated page.

Archived videos from Joe are available at this link. Send symbol requests to stocktalk@stockcharts.com; you can also submit a request in the comments section below the video on YouTube. Symbol Requests can be sent in throughout the week prior to the next show.

The stock market’s action on Wednesday was a bit like trying to pick a dinner spot with friends—lots of back and forth, but no real direction.

The market started out higher and went up and down without much of a directional bias until the Fed made its expected interest rate decision and Fed Chairman Jerome Powell’s press conference. Stock prices dipped lower, but right before the close, another headline moving event surfaced: President Trump announced the rollback of some chip-related restrictions. This news gave the market a boost into the close.

Here’s how the broader indexes closed:

  • The Dow Industrials ($INDU) finished up 0.70%.
  • The S&P 500 ($SPX) rose 0.43%.
  • The Nasdaq Composite ($COMPQ) added 0.27%.

Tech Leads, but Alphabet Takes a Hit

In terms of sector performance, Technology came out on top, followed by Consumer Discretionary and Health Care. On the flip side, Real Estate, Communication Services, and Materials were the laggards.

The main reason behind the stumble in Communication Services was Alphabet, Inc. (GOOGL), which dropped by a whopping 7.26%. Why the selloff? An Alphabet exec testified that Google was losing search traffic to AI tools.

The StockCharts’ S&P 500 MarketCarpet (below) reflects Wednesday’s price action.

FIGURE 1. STOCKCHARTS MARKETCARPETS FOR MAY 7, 2025. It was mostly green with some pockets of red.Image source: StockCharts.com. For educational purposes.

Overall, Wednesday’s performance is leaning more positive than negative, but is it enough to break through critical resistance levels?

Resistance Levels in the S&P 500

To get a clearer picture, we need to check out the daily chart of the S&P 500 ($SPX).

FIGURE 2. S&P 500 FACING A LOT OF HEADWINDS. THE 61.8% Fibonacci retracement level is a resistance level the index is struggling to break above.Chart source: StockCharts.com. For educational purposes.

The S&P 500 is sandwiched between its 50- and 200-day simple moving averages (SMAs). The Fibonacci retracement levels drawn from the February high to April low show that the 61.8% retracement level is proving to be a stubborn ceiling. Add to that the downward-sloping 50-day SMA, and the market may have a tough time moving higher. To leave the downtrend in the rearview mirror, the S&P 500 would have to break above its 200-day SMA with the necessary follow-through to keep it above that level. So far, the price action suggests that the S&P 500 will face headwinds to get to that stage.

News Moves Markets, Like the Chip Surprise Today

Remember, the market’s price action is like riding a rollercoaster powered by headlines. This can sometimes send technical analysis into a disarray.

Take, for example, today’s news about lifting the chip restrictions, which sent semiconductor stocks higher. The VanEck Vectors Semiconductor ETF (SMH) jumped 2.05% (see chart below).

FIGURE 3. DAILY CHART OF SMH. Will the semiconductor ETF be able to break out above its May 2 high?Chart source: StockCharts.com. For educational purposes.

Like the chart of the S&P 500, SMH needs to work harder at breaking its downtrend. The one ray of hope is that Wednesday’s move reached the May 2 high. The downside: it wasn’t able to break above it. This shows investors are cautious about semiconductors and the overall equity market.

Volatility Says It All

The caution among investors can be seen clearly in the chart of the S&P 500 vs the Cboe Volatility Index ($VIX).

FIGURE 4. VIX VS. S&P 500. Even though the VIX pulled back from its April peak, it’s still above average.Chart source: StockCharts.com. For educational purposes.

What’s interesting is that while the VIX fell when the S&P 500 rose from mid-April, the VIX hasn’t dropped to its average level of 19. It’s still trading above it, which is another point that increases the probability of further downside in equities.

The Bottom Line

There is a lot going on: geopolitical tensions, trade deal updates, policy shifts. Any of these can jolt the market in either direction.

It was encouraging to see tech stocks and semiconductors bounce on Wednesday, but that doesn’t mean we’re headed back to the days of growth stock leadership. If you’re an investor, especially one managing retirement money or nearing retirement, the best approach is to be patient. We’re not out of the woods yet.

As always, stay alert and stick with your investment plan.


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Valerie the dachshund has finally been reunited with her owners after surviving 540 days alone on Kangaroo Island in South Australia.

Owners Georgia Gardner and Josh Fishlock described the moment they got to hold the tiny pup in their arms in a statement published Wednesday.

Gardner said she “burst into tears” when Valerie ran up to her as they saw each other again for the first time on Tuesday.

“She was wagging her tail, making her little happy sounds, and wiggling around with joy. I held her and cried and cried,” she said in the statement.

“She’s stockier now, strong and healthy… healthier than we are, honestly!” added Gardner.

Fishlock said the pair hadn’t expected to see Valerie again.

“It still doesn’t feel real,” he said in the statement.

Valerie, who will soon celebrate her third birthday, went missing on a camping trip to the island in November 2023.

When strangers tried to help, she fled into the undergrowth, and her owners eventually gave up and returned home to the mainland.

With no sightings it was assumed Valerie had met her match with a snake or perhaps one of the giant Rosenberg’s goannas — reptiles up to 1.5 meters (5 feet) long — that occupy the island.

However, reports of sightings started to emerge, sparking a massive search operation led by volunteers from the Kangala Wildlife Rescue, a non-profit group set up in 2020 following the devastating Australian bushfires.

Valerie was eventually found on April 25, and has been looked after by the charity since.

Director Jared Karran described Valerie as “truly something special.”

“She was just so much smaller than we imagined. If it was a miracle before that she’d survived — seeing her size — it’s just unbelievable that she was able to survive and thrive out there!” he said in the statement.

Home to around 5,000 people, Kangaroo Island is about 45 minutes from the mainland by ferry. Tourists go there to see Australian native wildlife, but officials have long had a problem controlling introduced species including feral cats. The island is thick with bush, and there are many places for a small dog to hide.

Another difficulty is the island’s vibrant ecosystem, according to the charity.

“One of the reasons this is such a difficult rescue and not as easy as just baiting and setting traps, is due to the fact we are constantly competing with hundreds of wildlife like possums, wallabies, kangaroos, goannas and feral cats. All which are all just after a feed also,” the group said in a post on Facebook before the little dog was found.

Now Valerie is preparing to return home to Albury, New South Wales, where she will be reunited with Gardner and Fishlock’s other pets, Lucy the rescue cat, Mason the red heeler and their latest addition, Dorothy, a fellow dachshund.

This post appeared first on cnn.com