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The Technology weakness doesn't immediately suggest any kind of larger breakdown, but it is important to note that the last two breakout attempts in RSPT-2.14%  the Equal-weighted Technology ETF, both failed. Key will be 37 on the downside and until/unless that's broken, it's still right to consider Tech attractive on minor weakness.

Very good move for Technology today- Equal-weighted Tech making minor breakout and should lead higher into end of month- Notable uptick in Technology performance late this week which is a temporary positive for risk assets. RSPT-2.14%  shown below, Invesco's Equal-weighted Technology ETF, breaking out of its minor downtrend for October. Targets for NVDA lie near 147-150 by end of month

Equal-weighted Technology is breaking back out to new multi-month highs on a daily closing basis at current levels, as it resolves its three-month triangle pattern to the upside. Today's move is actually more important than exceeding July intraday highs structurally and should allow for a technically driven push higher in Tech over the next week. (Chart shown is Invesco's Equal-weighted Technology ETF- RSPT-2.14% )

Heading into Europe's close, we see a moderate rally in US Equities that has been largely disguised by weakness in AAPL-2.95%  which is falling by the most it has in a month. While Equal-weighted S&P 500 did rise to a record high today early in trading before giving back some of these gains, 10 of 11 sectors are higher today on an Equal-weighted basis, with only Technology being dragged down. This Tech weakness isn't as apparent when eyeing RSPT-2.14%  which is just lower by -0.26% but XLK-2.49%  is down -0.67% as AAPL along with SKYW-0.49% , QRVO-1.38%  MU-0.72% , TER-2.54% , and AVGO-3.15%  are all down more than 3%. Thus, Semiconductors are down, but the broader market is acting fine, with Financials, Energy, REITS and Utilities all higher by more than +0.50% and even Healthcare is up by +0.47%. Overall, it's important to recognize that the US stock market is made up by more than just AAPL-2.95% , but Technology's negative performance today is dragging down the major US Benchmark indices like SPX and NASDAQ, while DJIA is positive, DJ Transportation Avg is positive and RSP-1.54%  is higher by over +0.30%.

Today's stock market activity might seem confusing for those who aren't able to keep up with the broader averages, as 10 out of 11 sectors are down today, and just fractional gains out of Technology (RSPT-2.14%  up just +0.11%, vs. +0.46% for XLK) Sectors like Materials, Discretionary, Financials, Utilities and Healthcare are all down more than -0.50%. Thus, the broader market, as shown by RSP-1.54% , the Equal-weighted ETF, is lower by nearly half a percent, and more in line with the kind of "down day" we might expect given 10-Year Treasury yields rising by.05 bps. RSP has been lower every day this week, which might seem shocking to those just watching NVDA. Yet, this falling stock market directly lines up with rising yields and today's PMI data was somewhat more robust than expected along with a better (lower) Jobless claims number that kicked off this push higher in yields. The chart below shows the Equal-weighted SPX after falling every day this week

Technology has stabilized following the Equal-weighted Technology ETF by Invesco (RSPT-2.14% ) having reached the bottom of the daily Ichimoku Cloud (shown in enclosed chart) Despite some weakness in Tech Hardware today, both Semiconductors and Software are higher, and helping Tech to show positive performance which is the only sector higher today while 10 other sectors are lower, led by Utilities, Energy, REITS, and Materials which are all down more than 1%. (However, Materials and Energy have very small percentages within SPX and thus their declines don’t mean as much to the broader indices ) The patterns of NVDA, AAPL, META, GOOGL, MSFT, AMZN remain in very good shape, so it's tough to be too negative on Tech, and recent weakness should make Tech appealing this week for finding support and starting to push higher. QQQ remains under pressure, and does require a move back above 435 to be bullish for a move back to highs. Support remains near 425 then 421. As for RSPT, this has some minor support at current levels, while any move back under today’s lows would lead to $33. Regardless of near-term Technology weakness over the last couple days, Tech remains trending up vs. S&P 500 and has not broken its relative uptrend.

Technology has stabilized following the Equal-weighted Technology ETF by Invesco (RSPT-2.14% ) having reached the bottom of the daily Ichimoku Cloud (shown in enclosed chart)  Despite some weakness in Tech Hardware today, both Semiconductors and Software are higher, and helping Tech to show positive performance which is the only sector higher today while 10 other sectors are lower, led by Utilities, Energy, REITS, and Materials which are all down more than 1%. (However, Materials and Energy have very small percentages within SPX and thus their declines don’t mean as much to the broader indices ) The patterns of NVDA, AAPL, META, GOOGL, MSFT , AMZN remain in very good shape, so it's tough to be too negative on Tech, and recent weakness should make Tech appealing this week for finding support and starting to push higher. QQQ remains under pressure, and does require a move back above 435 to be bullish for a move back to highs. Support remains near 425 then 421. As for RSPT,  this has some minor support at current levels, while any move back under today’s lows would lead to $33. Regardless of near-term Technology weakness over the last couple days, Tech remains trending up vs. S&P 500 and has not broken its relative uptrend.

Another day which is more interesting than the SPX net change might indicate with prices just marginally "green" at +0.06% at 4997.37 hovering just below 5000. Both Small and mid-caps are up sharply today, while both US Treasury yields and US Dollar have pushed higher. Large-Cap Tech influence is showing a rare period of underperformancce as FTNT-1.73% , AAPL-2.95% , ORCL-4.70% , AMD-5.58%  are all lower. Yet the strength of MPWR, ON, ANET, NXPI, AVGO gains are helping Semiconductor stocks and the broader equal-weighted Technology sector to show gains of more than 1%. Thus, while markets might seem flat today, Tech is actually showing some stellar outperformancel along with Equal-weighted Discretionary. Both of these RSPT-2.14%  and RSPD-0.99%  are up more than double what XLK-2.49%  and XLY-1.18%  are showing in Thursday's trading. As discussed previously, SPX 5000 has no real significance outside of psychological reasons, and likely should be surpassed next week.

As of 1:30pmEST, S&P, NASDAQ and DJIA are all higher by +0.50-1.00% with outperformance by Technology, Materials, and Industrials which are all pushing higher by more than 1% on the session. Communication Svcs and Staples are the only two sectors which are negative. Market breadth is around 3/2 positive, not Super bullish but above avg gains in both Tech and also Financials are bullish for todays session and SPX has pushed up just below 5,000. Neither US Dollar nor Treasury yields are showing much volatilty today and Commodities are largely weaker with Grains, Copper, and Silver leading declines. Gainers in the commodity complex include Crude and Natural Gas, Cocoa, Orange juice and Sugar. Cryptocurrencies have shown some above-average signs of trying to push out of their recent consolidation today. Overall, no evidence of any peak nor reversal and today's rally still appears like a positive and shows a lack of new Daily DeMark based Exhaustion signals. Weekly charts appear like they might require another 2 weeks, which could line up with the timeframe of Presidents day holiday. Overall until Tech can begin to weaken, it's tough to find much fault with Equities. Equal-weighted Tech ETF RSPT-2.14%  looks primed to advance to $34.50 and still quite early to sell Tech in my view.

Today is showing an extraordinary amount of divergence that's been quite rare in recent months, if not years- Nasdaq is up 1.1% and SPX higher by 0.63%, but these indices are diverging substantially from actual market performance- meaning 9 out of 11 sectors are lower on the day and breadth is hugely bearish, by nearly 3/1 based on advance/decline as well as volume. Technology as a sector in Equal-weighted terms is actually down on the day (RSPT-2.14%  -0.18%) while XLK-2.49%  and XLY-1.18%  are higher by +0.65% and +0.80% respectively. Thus, we're seeing a huge amount of outperformance by Large-Cap Technology that's been rare for even recent months. Technically for those who don't study internals, it appears like the market's having a great day. However, it's often a warning sign if most stocks are falling, but a select few (META0.02%  +20% today alone, AMZN +7%) are carrying markets while the broader market suffers. Since most investors follow and are benchmarked to the SPX, it's right to study SPX technicals. Yet, this large-cap divergence is growing more extreme, and it's just worth pointing this out on a rainy Friday- Have a good weekend All!