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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-1.25% ) 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-1.45% , GOOGL-0.61% , down 11 and 13% respectively from All-time highs("ATH"), NVDA now down 4% from ATH, AMZN-2.00%  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

Great earnings beat by GOOGL-0.61%  and the stock has broken out of a reverse head and shoulders pattern this morning in gapping above $169.16. (I discussed GOOGL-0.61%  technicals for those who might have missed in my Technical Strategy report from 10/28/24 "Technology has achieved a minor breakout ahead of Earnings" Today's move is a big positive and should drive the stock up to challenge all-time highs at $191.75

US Equity indices have retreated over the last few hours, but market breadth notably has actually improved and we're now seeing more than 3/1 advance/Decline as Energy, Materials, Industrials, are all up more than 1% and even Technology remains positive by +0.71% with the only "down" sectors being REITS -0.20% and Staples -1.05% being dragged down by DG-0.40% , DLTR1.51% , TGT2.84%  despite good strength out of CLX-1.64%  and BF/B. Overall, this pullback is largely Technology retreating, and GOOGL-0.61%  gave back most of its gains as AAPL announced their intention to invest in OpenAI and join the funding round. AAPL also has given back most of its early gains. Overall, i don't feel like this pullback is all that meaningful unless it were to break yesterday's lows near 5561.

After dropping over 15% in 4.5 weeks, GOOGL-0.61% has managed to find support near its pre-existing uptrend line from 2022 which also coincidentally represents its intermediate-term breakout Pivot- This looks to be a very attractive level of support for GOOGL after this pullback- I expect stabilization and a low and that GOOGL should begin pushing back higher with first resistance found near 164

S&P Futures on hourly charts shows the late Thursday surge to test Wednesday's peaks of this week, followed by some minor churning into this morning. However, this pattern is quite positive and likely will allow for upside follow-through as other sectors follow suit to join strength seen in Technology. Today's S&P Leaders are RMD-1.16% , GOOGL-0.61% , SMCI1.84% , NVDA-2.75% , TROW-3.83% , and KLAC-0.86%  all higher by more than 4.5%. Meanwhile, stocks like INTC-4.10% , AON-0.86% , DXCM-3.21% , CINF-6.01% , ODFL-1.86%  are lagging performance, and lower by more than 5%. Transports have been a notable laggard this week, and Financials are underperformers and declines in HON-1.21% , IBM-2.72%  PG-1.74%  are weighing down the DJIA which is just fractionally positive at +0.22%. Keep a close eye on Financials and Transports, the latter which is weighing down the Industrials space. However, despite the lack of broad-based strength today, the ability of "Magnificent 7" to carry markets higher on good earnings is certainly a positive and cannot be dismissed.

90 min to go in Wednesday's session, we've seen early losses be recouped to some extent, with SPX now just fractionally negative (-0.02%) while QQQ-1.74%  is still up a minor amount on gains by TSLA-0.62%  TXN-1.24%  ON-6.66% , TTD-2.22%  and some outsized strength out of many Semiconductor names (SOX higher by +0.85%) However, today's sector performance definitely is a bit defensive in nature, with Utilities, REITS leading the charge while Industrials are being hard hit on losses from ODFL-1.86%  which is hurting the DJ Transportation Avg. Overall, i don't sense that the minor consolidation after yesterday's bounce has been fulfilled. This structure seems to indicate that another minor pullback might unfold into tomorrow before a large rally takes place into early to mid-May, likely on the heels of good earnings out of MSFT-1.45%  and/or GOOGL-0.61%  tomorrow. At present, support for ^SPX-1.59%  weakness lies near 5037 then 5021 while any move back OVER 5089.48 would allow for this rally to continue without much more decline. Bottom line, the gains of the last two days gave some pretty hard proof that lows for the larger decline from March are in place. I expect "maybe' another 30-40 point S&P pullback before a rally up to 5200 and ultimately 5400 gets underway which should start this week, continuing on early week progress

Today's early weakness still shows a choppy picture since late March and SPX and DJIA failed to make similar progress as NASDAQ did yesterday. However, quarterly EPS from the "Magnificent Seven" is poised to rise 38% y/y vs. profits declining -2% for the rest of the SPX (Per Bloomberg Intelligence) Thus, i firmly believe (and Technology charts of AAPL-2.98%  GOOGL-0.61%  META1.03%  help to back this up) that Tech earnings can save the market yet again. However in the short run, until 5212 can be exceeded in ^SPX-1.59%  cash index, the short-term pattern remains negative and suggests an upcoming test of SPX-5100- It's worth nothing that 5100 represents an area that is very attractive as risk/reward support technically

^SPX-1.59%  gains largely being fueled by GOOGL-0.61%  today following this announcement of the partnership with AAPL and the Gemini allowed to power the Iphone's AI Features. TSLA also leading all ^SPX-1.59%  names today, higher by 5%. However, broader market performance is just barely positive and Energy, REITS are down today, while Industrials, Discretionary, Financials, Utilities and Technology are all up less than +0.25% today. Thus, US Stocks are a bit more mixed than what broader indices are showing as of 1:15pm EST, and Market breadth is up just 3/2 positive, rather mixed for a market where NASDAQ is higher by more than 1%. Enclosed is Bloomberg's Information Technology index, shown on an hourly timeframe, which illustrates how Tech as a sector has been rather neutral, trend-wise, over the last few weeks. The earlier breakout attempt failed, but this is largely still thought to be a bullish pattern, with Tech consolidating in a range near its all-time highs.

The GOOGL triangle breakout today has caused Alphabet to rise over 3% making this the top SPX percentage gainer in Wednesday's session. Note that at current levels,GOOGL-0.61%  is right at OCT peaks ~141 so it's tough yet to call for immediate upside acceleration, technicallly speaking. However, this breakout move today is quite positive on an intermed. term basis for GOOGL and should help this lift technically up to$151 near the peaks made in Nov 2021. I suspect this might happen into late January with 1/28-30 being a pivotal time for the US Equity market. For now, any act of stalling out here and minor consolidation would make GOOGL quite attractive to buy dips at 136-138- Overall, i like GOOGL technically here, but require a weekly close OVER 141 to expect immediate follow-through

Fractional gains today out of major indices, and still seeing Small-cap strength, though the large-cap gains inGOOGL-0.61% AMZN-2.00% HD0.86%  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 (LUV0.50% ) 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