Morning Notes — Levels and Sectors

At current levels, the S&P 500 (SPX) sits just above strong technical support in the 3220-3310 range.  The Nasdaq 100 (NDX), where positioning had become overcrowded, is currently resting on short-term technical support in the 11000-11320 range with more significant support at ~9750-10,300.  The NDX could break to that lower support zone, but we look for the SPX to hold current support and build a short-term base before testing last week’s record high of ~3581.  Many of the names within Tech are still descending from short-term overbought status and need more time to unwind.  Our preference is to add exposure in cyclical/value sectors where positioning and valuations remain below historical averages…and easily sustainably dividend yields can run as high as 5%.