How long can Technology outperform on this selloff?

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Near-term SPX trends remain bearish, and trends and momentum remain negatively sloped while market breadth is in dire need of immediate recovery. For now, the risk-on trade remains captive to WTI Crude oil and progress in reopening the Hormuz Strait.  In the short run, Wednesday’s breakout in WTI Crude back higher likely can result in a push back to $115, and the breakout in global bond yields might prove more troublesome to Equities in the short run.  Until evidence of capitulation arises, it’s likely that US Equity indices are setting up for a coming test of last November 2025 lows.   It’s thought that U.S. equities require a lot of strength and breadth improvement to expect that a further selloff into April can be avoided, and for now, volume hasn’t been strong enough into Declining issues to think that any evidence of capitulation is at hand.   Most investors should continue to favor a heavily diversified stance and overweight defensive sectors like Utilities, Telecom, and Pharmaceutical stocks until Technology can show more evidence of stabilization.  

US Equity indices closed at the lowest levels of the year as $SPX got to within striking distance of November 2025 lows, while $QQQ violated its month-long consolidation before attempting a late-day rally.

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