The Backstop Boys

The Backstop Boys July 27, 2026

TECHNICAL STRATEGY Quit Playing Games With My Chart Jonathan Krinsky, CMT WHAT YOU SHOULD KNOW: ( As reported in the WSJ over the weekend, Nvidia (NVDA, not rated) is in talks with OpenAI (private) to guarantee $250bn of financing for Data Center was initially greeted with optimism. As always, we are not as concerned with the 'news' itself as the price action to the news, and that is certainly standing out to us today with semis fading from green to down 2-3%. That sort of trade in the face of a well publicized 'backstop'

This report is intended for Unauthorized distribution prohibited. suggests we still have a ways to go in this AI correction. There were also two news items out of China overnight. A new memory maker IPO - CXMT Corp (688825 CH, not rated) and as reported by The Information, a Chinese company has begun mass-producing homegrown immersion DUV (deep ultraviolet) lithography machines for the first time, so perhaps those issues are also weighing on the group. Regardless of the news, we continue to see meaningful downside for the group and think a test of the 200 DMA (-22% for SOXX) is a fairly likely outcome, but not one many tech investors are prepared for. ■ Quit Playing Games With My Chart. We continue to see meaningful downside for the group and think a test of the 200 DMA (-22% for SOXX) is a fairly likely outcome, but not one many tech investors are prepared for. ■ Mo' Unlikely to Hold. High-Beta momentum now coming into its 200 DMA. We don't think it holds, which would open the door down towards the March lows (-23%). ■ Keep an Eye on Spreads. IG Tech Sector OAS nearly back to March wides when the Tech sector was -25% lower. ■ Healthcare Holding Firm. A defensive posture with Healthcare really outperforming and XLV trying to breakout from its YTD trading range.

Source: BTIG and Bloomberg for all charts

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BTIG, LLC Jonathan Krinsky, CMT (