top of page

The Changing of the Guard

Stocks rallied again on Tuesday. The technology-laden Nasdaq Composite Index (COMPQ) closed at an all-time high.

Is this the changing of the guard?

No, not the changing of the guard at Buckingham Place, but a return to the former leadership names such as technology and growth stocks?

Tuesday's rallies came as FED Chairman Powell, speaking before Congress, reiterated that rising inflation is transitory. Powell again stated the central bank would wait for actual inflation to appear before raising interest rates.

The stock market reacted to the news as the S&P 500 Index (SPX) rallied 21.65 points or 0.51% to 4,246.44, leaving the benchmark index only 0.25% away from its 6/15/21 record high, at 4,257.16. The Nasdaq Composite Index (COMPQ) recorded a new all-time high after gaining 111.79 points or 0.79% to 14,253.27. The blue-chip Dow Jones Industrial Average (INDU) also rose, adding 68.61 points or 0.20% to 33,945.58.

On the sector front, 9 of the 11 major S&P 500 sectors were positive on Tuesday. Only two were negative - real estate and utilities. Consumer discretionary (XLY) and technology (XLK) stocks were the leaders gaining 0.94% and 0.91%, respectively.

Although we realize summer is a time to relax and enjoy the nice weather, the stock market may experience a changing of the guard this year. Technology and growth stocks appear to be poised to regain their leadership roles after consolidating for the past few months.

Enclosed below are charts of popular US indexes. Pay attention to the recent technical developments or the market action over the past couple of months. Will technical breakouts during the summer force investors and traders on vacation or the sidelines to return to the prior market leaders?

Source: Chart courtesy of

Source: Chart courtesy of

Source: Chart courtesy of

64 views0 comments

Recent Posts

See All

Closing of the Newsletter

Dear clients, After four rewarding years, the time has come for me to close the Lee Technical Strategy Newsletter, effective today. I want to take this opportunity to let you know what a great honor a

Technical Review of the Top 25 NDX 100 Index Stocks

NASDAQ 100 Index (NDX) – NDX is a modified market capitalization-weighted index comprising 100 of the largest non-financial companies on the NASDAQ Composite Index (COMPQ). NDX is heavily weighted tow


bottom of page