Tech is on a Tightrope

It’s still a Bull Market, which means turbulence can be absorbed, but these tech charts carry that “tactical top” set up you can’t ignore.

The Mag 7 control about a third of the S&P 500.

If they stall, the index will chop even if the majority of stocks are holding up. 

That’s the catch, rotation can be bullish for stocks while still looking messy at the cap-weighted level.

In Bull Markets, though, patterns that look scary in real time often just morph into consolidations that resolve higher with the trend.

If we do break lower, the chart gives us a roadmap:

• First support sits at the former breakout zone near $57–58.
• Stronger support clusters around the 200-day SMA, April Low AVWAP and Prior AVWAP High near $51–53 area. 

A trip into that zone would feel like pain, but strength from there would be a great buying opportunity.

Tech is walking the tightrope. What it holds on the other side will set the tone for September.

Anyways, that’s my two cents.