Minor consolidation in Large-cap Technology possible ahead of broad-based breakout

Short-term trends are bullish but extended following the recent pushback to new all-time highs for SPX and QQQ, while many other indices failed to participate. While DJIA, RSP, and IWM should eventually begin a similar move back to new all-time highs, at present, some minor consolidation looks possible initially in large-cap Technology following a stellar comeback.  I continue to view the larger move for Equities as being higher, given the subdued sentiment on both the Retail and Institutional levels.  Moreover, a bullish equity structure combined with solid momentum and breadth warrants the overweighting of US Equities at a time when investors are largely unclear about the extent of tariffs or their implications.   In the short run (meaning 3-5 days,) one cannot rule out some minor consolidation given the choppiness still present for many US Stock indices.  However, there remain ample reasons for optimism in the “larger scale of things” given the rebound in Technology.

SPX and QQQ have broken out, but many others haven’t

I think it’s important to recognize that despite last week’s breakout back to new all-time highs for SPX and QQQ, many other indices have failed to follow suit thus far.

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