Stock Market Commentary: Is there tech leadership?

Bulls made a stand and helped erase the bulk of Monday's losses. Best news comes from breadth indicators where Bullish Percents and the Percentage of Stocks above the 50-day MA are strongly diverging (positively) to price. We may not be seeing much in the way of market breakouts, but there are stocks which appear to be building bases and will be the next leaders. We still haven't seen much action around the 200-day MAs so its still early days.

In general, technology looks to be faring better than large caps. Although breadth indicators don't appear to have hit the same support levels as large caps have today - this is a bit of a mixed message; room to fall but performing better. The bullish divergence in the Percentage of Stocks above the 200-day MA has been breached but unlike S&P stocks there is at least a nascent uptrend; so things are improving for technology stocks over the long term.

Certainly looks like toe dipping territory.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts and stock charts website

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