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Looks are a bit deceiving today, as Despite a 1.5% gain in Technology and +0.75% in SPX, the Equal-weighted SPX is lower and market breadth is negative by a roughly 3/2 margin. While it's important to respect the bullishness of seeing big cap names like META-1.70%  AMZN-2.76%  push back to new highs, only 2 of 11 sectors are positive today, Technology and Comm. Svcs, while Discretionary is flat with Cruiseliners strength being offset by weakness in the Autos. As hourly charts show below, this bounce is nearing important resistance which likely causes a slowdown between 1:30-4pm today given various timing indicators, and i suspect a strong overhead zone of resistance between 6065-6100 which might hold gains and result in a stalling out. Overall today does not accomplish anything technically, as this oversold bounce will need to accomplish more to be able to project back to new highs. Near-term, given Rates and US Dollar bouncing, i expect to see some strong resistance as these factors work as a Headwind to gains, along with market resistance given some of the broad-based weakness across many sectors today.

While the bounce into next week remains intact at this point, SPX and QQQ have shown decisive lagging regarding to the Equal-weighted SPX. When eyeing the top 5 stocks in SPX by market cap- NVDA at 3.48T down to GOOGL at 2.03T, each is down at least 3% off all-time highs and in some cases, GOOGL is down 13% from all-time highs. One can see clearly that some interesting sector rotation is happening. Yet, charts of the Roundhill Magnificent 7 ETF (MAGS-2.55% ) show this to be in very good shape, thanks to TSLA which went from laggard to leader recently within the Magnificent 7. Thus, the breadth deterioration having been discussed regarding the US Stock market certainly is not limited to lagging sectors like Staples and Healthcare, but also affecting US Tech "former leaders" like MSFT-2.02% , GOOGL-2.75% , down 11 and 13% respectively from All-time highs("ATH"), NVDA now down 4% from ATH, AMZN-2.76%  down 8% from ATH, and even META is lower by 6%. Important as the top stock by market cap that NVDA not undercut 137, as this would have the power to cause a correction in SPX and QQQ. Chart of MAGS is shown below

^SPX-1.67%  has shown more damage and has undercut last week's lows. However, here also, price has not shown sufficient deterioration yet to think that the index has peaked out. There very well could be a relief rally into US Election given AAPL-0.13%  AMZN-2.76%  META-1.70%  earnings on deck which provide a bounce, but one that ultimately proves short-lived around mid-November. Ideally from an Elliott-wave perspective, SPX could make a minor new high into November and then began a decline into late November, technically. For now, as this chart shows, there looks to be ample technical support, making this morning's decline a probable good risk/reward for traders to bottom today or tomorrow for a push back higher, which might be led by large-cap Technology

AMZN-2.76%  recovery is impressive and the stock is now set to close above the prior peak from August when it successfully filled the gap from 8/1. this is a bullish reversal and will be a bullish technical close above 181 that should allow AMZN to continue higher into next week's FOMC meeting. Key level to keep an eye on is 199.60 which would allow this most recent rally from 8/28 to equal the initial one from 8/5 in price points gained. Additionally, this would represent an area near prior peaks from July which are likely to represent strong resistance on gains. Overall, AMZN remains on UPTICKS and this is eventually expected to break back out to new all-time highs. At present, today's progress is a welcome development.

AMZN-2.76% , part of UPTICKS, breaking back out to new all-time highs today. this is a very constructive technical development and should drive the stock up to $220-225 into mid-August/early Sept. I continue to endorse AMZN- See this weekly chart showing that the stock stalled out and consolidated near 2021 highs before breaking out today. This should lead to upside follow-through. Bullish!!

AMD forecasts Q2 Revenue $5.4 B to $6B, estimate $5.72B, and 62c Earnings vs 61c expected. AMD trading down to $151.65 from 158.38 close, mild selloff after-market. AMZN, meanwhile reported strong Cloud unit sales on rising AI demand, its advertising revenue jumped 24% in 1Q, revenue rising 13% to $143.3 billion, an all-time high in the January to March period. AMZN-2.76%  says their AWS (Amazon Web Services growth rate is now at a $100B Annual revenue run rate. AMZN higher initially by 6% and has moderated a bit to $179.26, vs. today's $175.00 close

Discretionary is making good strides lately, with the Equal-weighted Invesco Consumer Discretionary/Equal-weighted S&P ETF ratio (RSPD-2.47% /RSP-1.52% ) moving to multi-week highs as stocks like AZO-1.11%  CCL-5.70%  CZR-6.41%  HAS-2.17%  NCLS ORLY-0.69%  VFC-3.66%  TSCO-2.67%  all showing above-avg gains in today's trading. However, on a larger scale, there hasn't yet been a material breakout to suggest intermediate-term outperformance in Consumer Discretionary. However, i do suspect this happens in 2024, and once this larger downtrend is broken in the relative ratio of RSPD-2.47%  to RSP-1.52% , we'll see some outsized relative strength in Discretionary names. as this sector will begin to outperform in the near-term, technically. It's early to overweight, but I'll be watching and this Discretionary sector certainly has some names of interest. As many know, i favor the Homebuilders like LEN-1.94% , PHM-2.63%  and DHI-2.10%  along with AMZN-2.76%  and DPZ-1.99%  (on my UPTICKS list) but also feel like the Casinos and Cruise-liners are attractive stocks for mean reversion outperformance for 2024. I like CCL-5.70% 's move today for example technically which is exceeding a 2 month downtrend and this might jumpstart this stock in the short run. Below is the ratio of Discretionary to S&P 500, both shown in Equal-weighted terms

Fractional gains today out of major indices, and still seeing Small-cap strength, though the large-cap gains inGOOGL-2.75% AMZN-2.76% HD-2.32%  are serving to hold indices "in the green" despite six of 11 sectors being down in trading. Energy and REITS are Sector Standouts today, along with +0.33% gains in Industrials. this might not be apparent with XLI given the FDX decline which is negatively affecting the Transportation Avg, but stocks like CAT along with Rail and Trucker strength, not to mention Airlines (LUV-2.65% ) are helpful to why the Equal-weighted Industrials group is positive. Outside Equities, Bitcoin is finally making a strong move to break its triangle pattern today and crypto is largely positive. Silver is leading precious metals today and US yields are fractionallly lower but have stablized in recent days along with US Dollar- SPX continues to have resistance at 4818, which following the most overbought daily RSI reading since Jan 2018, might offer some near-term resistance to this rally- See the Transportation Avg -0.50% loss whch hasn't made a dent in the ongoing uptrend