Sunday we said: if AMD delivers, Wednesday gaps higher and the rally broadens. AMD delivered. But the real accelerant was Iran. Peace headlines crashed oil 9% and sent ES 148 points higher in three sessions. The secondary scenario played out, plus a bonus catalyst nobody had on the board.
Three of six Sunday levels cleared. The stretch target (7,345) got blown through by 51 points on Iran peace headlines alone. The rotation high (7,235) caught Monday’s dip and held. The Lie holds at +2 CONSTRUCTIVE.
The relative strength rankings across all three cap sizes are telling the same story this week. Large caps, mid caps, small caps. The leaders are all in the same supply chain: chips, optics, power, construction, storage. When the entire chain shows up on relative strength simultaneously, the demand signal is structural. This is not sector rotation. This is capital flowing downstream from AI spend into the companies that build the physical infrastructure. The compounding opportunity is not just buying the chip maker. It is owning the chain beneath it and buying rotation lows across the whole stack.
The updated levels, updated lean, and the supply chain playbook are below the fold.
