Utilities is being raised to Neutral technically on recent weakness

S&P is growing closer to its short-term upside technical target of 5521, while QQQ also is nearing resistance a bit higher than 483-5 mentioned last week.   Overall, there remains no evidence of weakness in SPX, nor QQQ, and until price violates the rising 5-day moving average and confirms daily exhaustion signals, trends remain bullish, and it’s wise to stick with this trend.  Cycles show Late June as marking a possible short-term peak for QQQ, but proof in the form of a break of the current uptrend will be key for confirmation.

SPX continues to push higher, albeit at a slower pace on lighter volume in recent days.  Technology, to its credit, continues to lead all sectors on a 1-week, 1-month, 3-month and YTD basis.

The degree to which other sectors have begun to fall behind has grown a bit more pronounced lately, as nine equal-weighted sectors are now lower over the past month.  However, this divergence between the average stock and large-cap Technology certainly hasn’t gone unnoticed, and countless posts on Financial Twitter (X) are now mentioning and doing so negatively.

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