After reviewing the leaders in Tech land, lets look at the nation’s headline index, the Dow and its broad index, the S&P 500.
Here is the Dow, testing the SMA 200 as noted earlier. While the lower low to mid-May is not pleasing, the SMA 200 and its uptrend are the keys here. If this market is going to gain support and rally anew, it’ll need to do it around this area.
SPX has been strong relative to the Dow and is not doing anything we had not allowed for it to do in the pullback within its grinding (some might say torturous) rally to a potential top test. Backing out all that we may think that we know right now, this looks like a classic ‘buy pullbacks within an uptrend’ situation on the SPX. There are lots of other things in motion, but quieting it all down to this chart, that is what I see at this time.
And there we have the tale of these two index charts. A bit different than Semi & Tech.