Waning Breadth Puts Indices in a Tough Spot

For now, bulls are in control but resistance remains firm in the S&P

Technical Edge 

• NYSE Breadth: 44% Upside Volume 

• Advance/Decline: 45% Advance 

• VIX: ~$18

With the runaway trade in big tech/AI stocks and the wavering breadth noted in the sections above, it may be prudent to shift to a “wait and see” perspective in the short term. 

We were able to use Tuesday’s gap-up open to exit our position in CRM and AMZN. Then we were able to position ourselves in other non-tech related names. While that did not work in our favor for PEP, the idea is that some of that hot tech money will rotate into prior relative strength leaders that are now testing into support. 

We’ll see how that pans out and react from there. Let’s look at some levels. 

S&P 500 — ES

Faded right from the 4243 area. Pretty notable. 

• Upside Levels: 4215-20, 4242-4250

• Downside levels: 4200, 4175-80

SPY