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The video in this report is only accessible to members

Divergence between the top performing stocks within Technology and the broader market continues to be one of the most discussed topics of 2024.   Performance disparity has reached extreme levels.  Yet, this doesn’t necessarily imply a large selloff is imminent.  A broadening out in performance can also happen to allow sectors to play catchup to recent large-cap Technology performance, and this seems to have started with Healthcare and Financials in recent weeks.  Near-term, some negative breadth and momentum divergences likely could prove problematic into March.  Yet, there’s been no evidence of any price weakness in the larger indices yet to warrant concern just yet. 

A few days of stalling out largely hasn’t provided many clues for either Bulls nor Bears alike.  However, it’s thought that any minor setback to SPX likely does not undercut 1/31/24 lows at 4845 right away before pushing higher into the time near the Presidents’ Day holiday for February. 

Despite all the concern about Technology being stretched, other sectors like Financials, Healthcare and Industrials have come to the rescue.  This is a bullish factor when viewing sector rotation on an Equa...

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