The Leading U.S. Stock Sector

On 10/24/25 all three main U.S. stock indices, S&P 500, Nasdaq Composite, and Dow Jones Industrial Average made new all-time highs.  This is a bullish signal implying the U.S. stock buying mania could continue for days, perhaps weeks. 

The PHLX Semiconductor Sector Index (SOX) has been a factor in the current surge up.

The weekly SOX chart courtesy of Trading View illustrates its long-term action.

Weekly RSI continues to make new post April 2025 highs.  Most of the time Stocks and stock indices will peak with at least one RSI bearish divergence.  The current RSI reading implies SOX may not peak for several weeks. 

MACD lines a still rising which is bullish.  The Histogram has a bearish divergence.  Watch for a decline and convergence of the MACD- lines, this could be the prelude to the ultimate SOX peak.

The SOX peak in early 2022 gives clues as to what may happen to the main U.S. stock indices in 2025.  The SOX January 2022 top corresponded with a major peak of the main U.S. stock indices.  Note that the weekly RSI peaked in mid – November 2021 then had a bearish divergence in January 2022.

If this phenomenon repeats in 2025, the main U.S. stock indices could make a significant peak in early December 2025.

A major bearish factor for the U.S. stock market during 2025 has been the underperformance of most of the so called “Magnificent Seven” stocks.  Several times during the second half of 2025 only few of the seven have made all-time highs corresponding with the main stock indices.

On 10/24/25 only Alphabet Inc. (GOOGL) of the Magnificent seven made a new all-time high.  The 09/07/25 blog “The New King of all U.S. Stocks” illustrated that GOOGL was the new king.

The weekly GOOGL chart updates its action.

In the 09/07/25 blog GOOGL weekly RSI was at its peak since April 2025, now there’s a bearish divergence., along with the weekly MACD – Histogram.  MACD – lines are still rising implying there’s fuel remaining for more upside action.

If GOOGL soon makes a significant peak, it’s possible that Nvidia Corporation (NVDA) could regain its crown as king of all U.S. stocks.  NVDA is one of the Magnificent Seven and part of the SOX.  

As stock bull markets develop fewer stocks participate.  This late-stage bull market can continue for week or months.  At some point stock buying manias end, the current mania is mostly in the SOX and some of the Magnificent Seven stocks.