2024-07-19 11:20:52 ET
Summary
- Technology stocks slide, the Nasdaq 100 is down 4.5% from its all-time high, and small-cap rotation ends abruptly.
- Small caps surged 11.5% in 5 days, RSI is overbought, and support level at $212, while the Nasdaq 100 appears to have more downside.
- The S&P 500 Index may escape correction with a 5% pullback, equally weighted S&P 500 shows a more modest pullback, watching for entry points.
Technology stocks continued to slide yesterday, with the NASDAQ 100-Index (NDX) down approximately 4.5% from last week's all-time high. However, the rotation into small-cap stocks that defined the previous five trading days ended abruptly. The Russell 2000 Index (RTY) led all indexes to decline nearly 2% on the day. I would not be worried about small caps or the improvement in breadth that came with their sizzling double-digit rally recently. The index simply ran too far too fast....
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Probing For Potential Market Downside Using Technical Analysis