Tech Sector Holds The Key
As of mid-day on Friday (April 21), and during the past couple of range-bound months, the Technology sector is outperforming the large-cap and small-cap stocks, as shown on the following charts.
It's still sitting above both its 20 and 50 day moving averages, while the Dow 30, S&P 500, S&P 100, Nasdaq 100, Nasdaq Composite and Russell 2000 Indices are below their 50 MA, with bearish 20 and 50 MA crossovers.
I'd watch for any signs of major weakness developing in Tech as a potential precursor to any significant drop in equities, in general. Otherwise, we could see a continued non-directional bias in the markets for some time.
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Disclosure: None.
Agree with you on this, Candy.
Hey, Gary...thanks...it's been awhile since we've "talked"...nice to "see" you again. :-)
Good to see you too, Candy. I've been asking myself 'correction or corrective consolidation?' for a while now. Seems like you've got the same question in mind.
Yes...it's unclear to me at this point. Perhaps, barring any major geo-political (including domestic) upsets or oversees nuclear "mistakes" in the near future, we'll eventually see markets resume an uptrend after drifting in this range, or maybe a bit lower until the fall. Although, there's still the possibility that markets spike higher one last time before a (rumoured) June rate hike.