US stocks remain within striking distance of the psychological 4000 area, while there are no sell signals in play at present we do believe the air is rapidly thinning and the next 10% swing is likely to be on the downside. However our preferred scenario remains a short-term pop above 4000 led by the oversold tech sector – now approximately 25% of the S&P500.
MM is moving towards a more neutral stance towards US equities.
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No change, US tech continues to tread water around the 13,000 area after enduring a sharp 12% correction from Februarys high, following the acceleration higher in US bond yields. If we were purely trading it would be a 50-50 call right here but we are giving the benefit of the doubt to the uptrend as the often used phrase in investing of “the trend is your friend” is built from years of experience plus the markets short as we mentioned earlier.
MM’s ideal scenario is the NASDAQ has one more attempt at 14,000 before enduring a meaningful correction.
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