Chart of the Day - Monday, July 7, 2025

🏆  Today's Chart of the Day was shared by @WallStWingman.
 

• The Software ETF ($IGV) had an inside day to start the week after breaking out to record highs on Friday. Despite falling -0.5% today, Wingman notes that $IGV is holding above the breakout level at $110.
   
• $IGV fell nearly -30% from December to April, but the rebound was even sharper than the decline. It's now emerging from an eight-month base within a strong long-term uptrend.
   
• Software is the second-largest industry group within the S&P 500, trailing behind Semiconductors. The top five holdings in $IGV include: $ORCL, $MSFT, $PLTR, $CRM, and $INTU. 
   

The Takeaway: The Software ETF ($IGV) is emerging from an eight-month base within a solid long-term uptrend. If $110 continues to hold, $IGV could make a new leg higher and lift the broader market with it. However, if this breakout fails, it will be a potential red flag.