The Trend & Cycle Roadmap is a weekly update discussing the key technical developments underway across markets and the implications for changes in equity leadership.
In this edition:
- Pullbacks never feel good but after an 8+% surge by the S&P 500 from the March low into this past Friday’s option expiration high, a pause was due. This week’s note looks at key trading support levels for the S&P 500.
- After surging 55% in Q4-Q1 the Russell 2000 has stalled in price while giving up almost all of the relative out performance that developed in 2021. The March 2021 lows remain a key technical level to manage risk.
- Semiconductors remain one of the more important industry groups to monitor given they often lead at market turning points. The SOX’s relative performance versus the S&P has notably diverged since February with March 2021 lows an important technical level tactical investors should be monitoring.