US 10 Major Rotation: MACD Quadrant Matrix Signals Sector Shifts

Based on the MACD Quadrant Matrix – 10 US Majors, we are seeing clear evidence of rotation between mega-cap tech stocks and large-cap value leaders.

🔹 Quadrant 1 (Leading – MACD Positive, Momentum Positive):
Strong performers remain in this quadrant: GOOGL, BRK.B, UNH, AAPL, TSLA. These stocks show sustained buying pressure and positive momentum.

🔸 Quadrant 2 (Weakening – MACD Positive, Momentum Negative):
META is starting to lose momentum despite a positive MACD → this could signal either consolidation or early weakness.

🔻 Quadrant 3 (Lagging – MACD Negative, Momentum Negative):
MSFT and NVDA are under pressure with both MACD and momentum turning negative. These names face higher downside risk if weakness continues.

🟢 Quadrant 4 (Improving – MACD Negative, Momentum Positive):
AMZN is in recovery mode, showing early signs of improvement. A breakout from this quadrant could push it into leadership.

Market Takeaway:

Rotation suggests select tech leaders (MSFT, NVDA) are moving into a corrective phase.

GOOGL, AAPL, TSLA remain strong leadership candidates.

Defensive large caps (BRK.B, UNH) continue to act as stable outperformers.

Trading Strategy:

Favor holdings in Quadrant 1 leaders (GOOGL, AAPL, TSLA, BRK.B, UNH).

Watch AMZN in Quadrant 4 for a potential breakout.

Be cautious with MSFT, NVDA in Quadrant 3 due to continued downside risk.

Risk Management:

Use stop-loss levels on weakening names.

Diversify between growth and defensive leaders to balance exposure.