Tech Leads, Costco Breaks Down: What Friday's Setup Reveals

0:00Good morning and happy Friday. Heading into today's session, Costco wholesale is under pressure after a sharp drop, while Apple and ARM holdings are flashing strength that has traders paying close attention. Let's break down what the technicals and automated signals are showing ahead of the open.

0:16Yesterday's session saw a clear risk on rotation with technology leading the way up over 2% followed by consumer discretionary and financials. a combination that often signals broad appetite for growth and cyclical exposure. On the other side of the ledger, consumer staples shed nearly 1.5%. Energy dropped about the same and utilities slipped as well. That kind of defensive sector underperformance alongside tech strength is a classic pattern worth watching for context on overall market sentiment.

0:51Gold futures stood out in a big way on the volume front, printing over 13 times their average daily volume while finishing just slightly lower on the session. That kind of extreme volume spike on a modest price move suggests significant two-sided interest rather than a clean directional conviction. It is worth monitoring whether that activity resolves into a clearer trend in the sessions ahead.

1:15Costco wholesale dropped over 4% triggering an automated breakdown signal on the technical model. RSI has pulled down to roughly 35, approaching oversold territory, and volume came in at 1.7 times the 20-day average. That elevated activity on a down day can sometimes indicate distribution, though it warrants watching rather than assuming.

1:35The 50-day moving average remains above the 200 day, so the longerterm trend structure is still intact, but this kind of flush from an elevated base deserves respect. Apple posted a modest gain of just under 1% ahead of the open with the automated system flagging a breakout signal at a moderate strength reading. RSI sits at 64 which is firm without being stretched and the 50-day moving average continues to hold above the 200 day. That alignment can be meaningful in technical terms as a sign of trend continuity.

2:11Volume came in lighter than average. So traders who study confirmation might want to see participation pick up if this move is going to extend. ARM holdings is up more than 9% in pre-market trading. a significant move that the automated signal is currently reading as neutral given the broader technical context. RSI is sitting right at 49, essentially the midpoint, which reflects a stock that is potentially resetting after prior volatility rather than running hot. The 50-day remains above the 200 day, which keeps the structural backdrop constructive, but with volume running below average, this surge will likely need follow-through buying to tell a fuller story.

2:50Rivian Automotive is surging nearly 9% ahead of the open, drawing attention with volume already running at twice its 20-day average. That kind of elevated participation on a big move can indicate meaningful conviction behind the price action. Technically, the automated signal is neutral here with RSI at 57 and the 50-day moving average still sitting below the 200 day, which places it in a longerterm downtrend structure.

3:17Whether this pre-market pop marks a genuine shift or a short-term spike is exactly the kind of question that technical traders will be watching the open to help answer. As we head into Friday's session, rotation into growth and away from defensives sets an interesting backdrop. Keep your levels clear. Let the price action develop and we will see what the open brings.

3:40This video is for educational andformational purposes only and is not financial advice. Markets are risky. Do your own research and consult a licensed financial professional before trading.