SPX and Tech
September 22, 2020
Over the last 7 sessions, the S&P 500 and nearly all of its Tech sector constituents have moved from overbought to short-term oversold status. Tech had a good day yesterday, but don’t expect the group to test highs at the same speed with which it corrected. Ultimately, the SPX should at least test the highs on leadership from Tech, but clearing that level will require broad sector participation…the type of participation we saw in the runup. Better than expected vaccine data catalyst for this type of scenario. For now, keep an eye on the relative performance of the S&P 500 Value Index (SVX) and Russell 2000 Index (RTY) for early clues.