A change of tone in the stock market leaves the S&P 500 SPX eyeing important support levels, and energy will have to pick up the baton as tech momentum wanes.
That’s the view of Jonathan Krinsky, chief market technician at BTIG, who in a note to clients published over the weekend observed that Apple, which has a 7% weighting in the S&P 500, has broken its uptrend. Krinksy said he remained cautious on the Nasdaq, whose big tech constituents have provided propulsion for the broader market’s near 17% gain for the year so far. The Invesco QQQ exchange traded fund QQQ, which tracks the Nasdaq 100, had just recorded a rare six-month winning streak but after last week’s retreat had broken its uptrend and was now displaying signs of weakening momentum.