Top Technical Large-cap Ideas

Equity trends from August remain bullish, but yet there’s been some noticeable divergence that’s cropped up when viewing SPX and QQQ vs. the Equal-weighted SPX in recent weeks. Monday brought about some cross-asset volatility in Interest rates, commodities, and also Currencies, which makes keeping a close eye on the Equity trends important this week, given recent divergences. Key Technology stocks like NVDA broke down on Monday under $137, and the divergences in stocks like NVDA, AAPL, MSFT, and GOOGL vs. the regular market look to be important to watch carefully. Overall, I’m expecting a trend reversal this week, and any move in SPX under 5845 would signal the start of a move down to test and briefly undercut early November lows into early to mid-December. This would line up with cycle projections and recent lackluster breadth.  Note, short-term pullback should represent an excellent buying opportunity for markets into December for a rally back to year-end, in my view.

I’ll address this week’s price action tomorrow and what might be in store. At present, tonight’s report concentrates on top technical ideas from Tom Lee’s Large-cap Stock universe.

Top Technical Stock Writeups:

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