Stock Trends

Tech check

Good morning,

This week, we’re focusing on the technology sector, looking at the largest stocks ahead of earnings season and some of the most notable charts that caught my eye as I scanned the industry.

But first, a quick stat that I believe is timely. On Tuesday, 53% of the stocks in the S&P 500 traded to a one-month low.

As shown below, forward returns are significantly above average following readings above 50%.

Now, they do fall back closer to normal averages when you account for the fact that we’re in an uptrend but at the very least it tells us that we should be in the ballpark of a tactical low. As discussed Tuesday in Overtime, it’s the character of any bounce that follows that will be important.

As for today’s equity report, we’ll look at:

• Bellwethers and key charts in the tech sector

• Winners and losers in consumer discretionary

• Transports getting trucked

• and more!

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Tech check

Apple fails at this week’s level to watch

Apple has been down every day this week, failing at this week’s level to watch from the Monday Morning Playbook. Now, AAPL is back at its October lows and needs to hold above $167. Not a great reaction, but the bullish momentum divergence is still there.

Crowdstrike has rolled over, falling below 2021 highs

Crowdstrike has been slowly rolling over ever since its ugly reversal on March 6. Now, the leading cybersecurity stock is drifting back below the breakout point from its 2021 highs.

Microsoft breaks the 50-DMA

Microsoft has now closed below its 50-DMA for the first time since October 5. Momentum (using RSI-14) peaked all the way back in January, though relative strength is hanging tough recently.

Nvidia -3.9% on Wednesday, big spot