{"id":65780,"date":"2023-09-03T23:21:51","date_gmt":"2023-09-04T06:21:51","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=65780"},"modified":"2023-09-10T18:06:35","modified_gmt":"2023-09-11T01:06:35","slug":"tech-stocks-help-press-limits-of-sentiment-shift-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2023\/09\/03\/tech-stocks-help-press-limits-of-sentiment-shift-the-market-breadth\/","title":{"rendered":"Tech Stocks Help Press the Limits of A Sentiment Shift – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong><\/h2>\n\n\n\n

Jackson Hole did not provide the market moving spark that I expected<\/a>. Instead, soft economic news delivered the decisive interpretation of future monetary policy<\/a> required to provide a fresh catalyst for stocks. The bullish spark caught me flat-footed as I was leaning into imminent oversold trading conditions<\/a>. Fortunately, the sentiment shift was so sharp and obvious, I was able to comfortably pivot to run with the herd…and the herd rushed for tech stocks in particular. In fact, the stampede was so decisive that buyers went into “press the limits” mode. The week ended with tech stocks generally tapping the upper limits of price action at the upper Bollinger Band (BB) and other forms of potential technical price resistance.<\/p>\n\n\n\n

The end of the week also featured the August jobs report. The market seemed to see softening in the data<\/a> despite the “stronger than expected” job creation. So I was surprised to see bond yields zipping higher for the first part of the day. The U.S. dollar (DXY) ripped higher as well. Stocks were also caught by surprise as sellers flattened out the S&P 500 and the NASDAQ from small up gaps at the open. Small caps held on for healthy gains. As stocks press the limits, the financial market faces one of those classically important junctures just as the summer of loving stocks<\/a> comes to an end with the Labor Day weekend. <\/p>\n\n\n\n

The summer, between Memorial Day and Labor Day delivered a 7.4% gain. Yet one more strike against the outdated adage “sell in May and go away.”<\/a><\/p>\n\n\n\n