Mid-cap 400 index and DJIA have joined Small-caps at new highs

Technical trends for US Equities are bullish, and I think the price action post-FOMC certainly seems to tilt the odds that a move back to new highs is now likely into year-end.  While META and NVDA’s underperformance has certainly served to weigh down SPX and QQQ in recent weeks, the Equal-weighted SPX has broken back out to new high territory.  Additionally, Small-Cap IWM has pushed to new highs, and as of today, the Mid-cap 400 ETF ($MDY) has also made a similar move back to new highs. Overall, my expectation is that Equities can likely push back to new highs, but that Small and mid-cap exposure should be favored for now until stocks like NVDA can begin to strengthen a bit more.

I think it’s difficult making too much of $ORCL’s decline for Technology, but the underperformance of $META and $NVDA, not to mention $NFLX and $MSFT, have been noticeable drags on $SPX and $QQQ lately.

Meanwhile, now we’ve seen $IYT, $IWM, $RSP, and as of today, $DJIA and $MDY push back to new high territory. Overall, despite what appears like some high-profile Technology stocks showing sub-par Technicals, it’s been the recovery in broad-based performance for the US stock market that has made the US Stock market more appealing from a risk/reward basis between now and January than what was the case a few weeks ago.

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