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Large-cap Tech outperformance should continue following SOX breakout Array ( [cookie] => 3ea535-58f73f-503b36-d1dff9-80018f [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 1 [max_usage_crypto] => 1 [lock] => 1 [message] => [error] => [active_member] => 1 [subscriber] => 0 [role] => fsi_pro [visitor_id] => 592822 [reason] => [method] => ) 1
Note: Due to travel commitments, there will be no daily technical strategy video this evening.
Markets remain quite choppy, with SPX largely range-bound over the last eight trading sessions as part of an ongoing bullish uptrend. Despite ongoing deteriorating breadth issues, I expect this recent consolidation to be resolved higher initially, but it remains important for markets to demonstrate some above-average sector participation after the FOMC meeting, given how weak the near-term underperformance has proven to be in many sectors. Despite the counter-trend bounce underway in both TNX as well as DXY, it’s unlikely that mid-November peaks are exceeded before the recent downturn follows through further to finish the year trending down. Overall, I don’t think the breadth of weakness matters just yet to the US stock market. Technology has successfully managed to turn higher in a way that’s been helpful to the market indices, despite underperformance in many various sectors. Near-term, this looks to continue.
In a nutshell, SPX’s recent eight-day trading range is bound by 6085 on the upside and 6035 on the downside. A daily close above or below either of these levels should lead the trend for the days ahead.
I expect that Equity indices likely turn higher ...
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