Tech rally sufficient to keep the Holiday-rally dream alive

Technical trends for US Equities are bullish, and this week’s Technology rally on blowout earnings from MU and a surprisingly low CPI gave some conviction to the market, having turned higher to bounce into year-end.   While the recent trend has favored diversifying away from “Mag 7” into US Cyclicals along with other areas of the world, this week’s recovery helps to put the near-term bullish thesis for Technology back on the “front burner”.  Defensive sectors have shown underperformance in recent weeks, while the US Dollar has weakened, similar to its seasonal trends for December.  Meanwhile, SPX is yet again near striking distance of all-time highs and within 100 points of reaching former peaks that were seen just six trading days ago.  Bottom line, I do expect Equities can likely push back to new highs, and am bullish for the next two weeks for a recovery rally back to new all-time high territory.

I hope all enjoyed my 2026 Technical Outlook presentation. Replays have been sent out this week, and all the presentations are currently on our website.

The last couple of weeks have brought about minor churning in Technology, but importantly, no major break in broader trends. While Technology did weaken in early December, 2025 has not been a spitting image of 2024 as breadth has proven much stronger in the broader market.

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