Technology saves the day again, as 2023 resembles late 2021

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Thursday’s breakout in SPX and NASDAQ look technically significant, and suggest that the lows for this March decline likely were made this past Monday.

Volume proved heavy with advance/Decline data showing roughly 3/1 bullish breadth and volume flowing into advancing vs Declining issues at a bit heavier rate.

Technology extended gains along with Financials, as the major banks finalized a rescue package.  Technology’s resilience has caused the sector to extend gains above areas thought likely to stall out ,while AAPL successfully finished at the highest daily close of 2023.

Thus, the last month’s rolling over of Financials, Energy, Materials and Industrials has been largely saved by Technology, which has roared back and appears likely to help markets bounce at a time when recent laggard sectors have begun to stabilize.

As S&P 500 index daily chart shows below, the act of reclaiming 3928 on a Daily close helps to improve the near-term structure technically speaking.  Thursday’s rally has surpassed early week highs to officially recoup the area which was violated.

This likely kicks off a rally back over 4025 in the next couple weeks.  However, this area adjoins a larger downtrend line from early February peaks.  This will need...
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