No Capitulation yet, and Technology has broken down given AAPL woes

Monday’s downside follow-through undercut areas that are thought important for early this week.  QQQ also broke an intermediate-term uptrend, while Technology looks to have violated support vs. SPX.  None of these are considered positive at a time when SPX had been attempting to stabilize. Overall, our recent selloff has proven far more orderly and concentrated than desired for investors seeking evidence of capitulation. While that still might be ahead of us this week, SPX should be closing in on lows based on Elliott-wave structure and cycles despite the lack of DeMark exhaustion present.  If there’s any positive thus far, it’s that the broader market has held up in better shape in recent weeks than the Tech dominated major indices. Meanwhile, there doesn’t seem to be much credit deterioration or defaults, and High yield spreads aren’t that wide at present vs. Treasuries. Overall, Technology certainly has the power to carry stock indices up or down regardless of how good earnings are at present. The bottom line is that it’s hard to have confidence in support levels until some type of stabilization begins and downtrends are broken. While I’ve suspected this should be close, there hasn’t been proof of it thus far as of Monday’s close. 

Overall, the factors that look positive for Equity indices involve the following:

-Market breadth has held up and above 1/13/25- mid-January lows.  Earlier in Monday’s session, five sectors were trading higher before the late-day selling (when looking at Equal-weight ETF). Thus, this remains largely a Tech driven decline, with large-cap Financials starting to weaken

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