Chart of the Week & Content Wrap – 7/12/24

Chart of the Week & Content Wrap – 7/12/24

Chart of the Week & Content Wrap – 7/12/24

Chart of the Week – Real Rotation

The rotation out of Tech and into everything else was widely discussed on Thursday: 80% of the SPX advanced as XLK fell 1.6%.

Indeed, one day doesn’t make a trend.  But it’s been this way since the April lows.  In fact, the S&P 500 now has had positive breadth for eight straight sessions on days in which Technology was the worst-performing sector.

 

Of course, mega cap growth has bounced back each time since then.  It will be a different story if the latest downturn gives traders pause this time.  And then we’ll see just how keen they are to rotate to other areas for a longer period. 

The last time that Tech underperformed the SPX for an extended span was from late-January though early May.  

 

That lasted 14 weeks (believe it or not), but the SPX declined in just three of them – during the spring 6% sell-off.   In other words, the market has proven that it can rally without Tech before in 2024. It may have to prove itself all over again soon.

CappNotes

Wednesday:  Six Straight Gains

 

CappThesis Premium Content

Starter & Professional 

Monday

Opening Look: Eighth Pattern Target Hit

 

Wednesday

Opening Look: Six in a Row

 

Thursday

Opening Look: Bullish Stats

 

Friday

Opening Look: Tech Lags, Everything Else Rallies

 

 

Professional Only

Monday

Roadmap: Week of 7/8/24

 

Thursday

Breaking Out Video

   

 

Client meetings & calls

MORE LIKE THIS