Big-cap Tech In Trouble?....Nice Breakout in Bitcoin, But It's Overbought Near-term
- Last week’s rally in the S&P 500 and NDX 100 were quite muted when you factor in how significantly bond yields declined. Yes, we did see some nice “rotation” in the stock market, but that might not last very long if the highly weighted tech stocks begin to decline in a more meaningful way. The “set up” for the tech sector is not a good one, but we’ll have to see more downside follow-through before we raise a warning flag.
- Bitcoin has broken out in a big way. We do need to point out that it’s getting quite overbought on a short-term basis, so investors should be careful about chasing it near-term. However, this breakout is very positive on an intermediate/longer-term technical basis.