A few notable software application companies are showing signs of slowing momentum. These firms have experienced a significant drop in their momentum percentile scores over the past week, signaling a potential cooling of investor enthusiasm.
This reversal, as pointed out by Benzinga’s Edge Rankings system, suggests that the powerful upward trends that previously defined these stocks are beginning to fade.
The data reveals a clear downturn for five software application companies, which were all recently in the upper echelon of momentum rankings.
Momentum ranking measures a stock's relative strength based on its price movement patterns and volatility over multiple timeframes, ranked as a percentile against other stocks.
Thus, the decline in their scores indicates that their stock performance is beginning to lag compared to their peers.
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The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, were lower in premarket on Tuesday. The SPY was down 0.025% at $643.14, while the QQQ declined 0.071% to $576.70, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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