The medium-term backdrop continues to point to a choppy summer for technology. Weekly momentum indicators, which track 1-2 quarter swings, have moved from oversold levels in early 2Q to overbought levels in early Q3, and continue to show evidence of peaking. I don’t believe this signals the end of the new bull market cycle that began in March, but it does suggest a healthy pause is likely underway after the impressive 2Q rebound.

My recommendation for long-term investors is to remain patient and wait for pullbacks in the coming 1-2 months as an opportunity to accumulate quality growth and cyclical stocks at more timely technical entry points.

Diverging technical behavior among the mega-cap tech leaders suggests choppy trading ahead

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In technology stock trading over the past two weeks, there were a number of technical events that suggest investors should be prepared for further choppy trading through the summer. Despite the impressive earnings growth reports delivered by the FAANG companies plus MSFT and others this week, only AAPL and FB have rallied to new highs while AMZN, NFLX, MSFT, GOOGL and TSLA remain below their July 13 highs.

GOOGL is particularly noteworthy given it is beginning to break below its rising 50-dma on rising volume and MSFT is close to cha...

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