Will Tech Finally Take a Breather?

Also, crude oil is forming a very interesting technical pattern.

• The strong rally in the stock market off the late-March lows continued yesterday, but it remained extremely narrow. With the chip stocks seeing some material weakness this morning…after a parabolic rally of almost 70% in just six weeks…it would be normal and healthy for the group (and the market) to see some sort of pullback over the very-near-term.

• That said, we don’t see any significantly negative news on the geopolitical front before the Trump/XI summit…so a major reversal right now does not seem likely.

• Crude oil has formed an interesting pattern on the technical side of things…which could lead to a meaningful move before too long.