Stocks Fight to Hold Support While This AI Supply Chain Leader Hits Highs

• The market is currently in a "chop zone," causing frustration due to a lack of clear direction. It started the week with a gap up instead of a capitulatory gap down, leading to sideways trading.
• Despite being oversold, significant concerns and hedging remain, preventing a clear resolution in the trend.
• For the market to experience a significant downward "whoosh" or capitulation, semiconductors (SMH) likely need to crack below the 375 level, as they represent a concentrated leadership group that has shown resilience.
• A specific trade idea is Flex (FLEX), a company involved in designing power and cooling systems for AI data centers, as well as automotive and health industrial applications.
• Flex is showing strong relative strength and breaking out, despite the challenging macro environment for swing long trades. Caution is advised, recommending smaller position sizes or tighter risk management.