Small caps start to lag again, while Equity Put call ratio hits lowest levels of the year   

Key Takeaways

  • SPX and QQQ rally stalled out but no evidence of trend change by 3/30 close.  Consolidation is more likely than not over the next 2 weeks into mid-April.
  • AAPL nearing January 2022 highs likely to serve as important resistance for Tech.
  • Healthcare’s Wholesale Drug/Supplier group is one of the strongest areas within Healthcare right now and on the verge of an all-time high breakout to end Q1.

US indices stalled out Wednesday, though insignificant weakness with prices having closed above Tuesday’s lows, and the uptrend remains intact, for now.  Various stocks within Technology like $AAPL are right up near prior highs from January, and should make follow-through difficult in my view, but we’ll await more evidence of the reversal.  Interestingly enough, Small and Mid-Caps have both begun to rollover vs Large-Caps in the last week (IWM underperformed Wednesday and relative charts below illustrate the ongoing 13-month downtrend in $IWM vs $SPX).  This attempted to stabilize and bounce in February but is now rolling back over and MACD has crossed the signal line back to the downside. Large-Caps should be favored.

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