The S&P 500 may set a new record. But the defeated tech sector has yet to break its own record.
Nasdaq 100, which is often used as a proxy for technology stocks and other high-growth stocks. There is still only 1% left to go until it breaks the highs in late April. The group was punished by rising interest rates and inflation fears.
The Nasdaq 100 is now in its waiting period, according to TradingAnalysis.com founder Todd Gordon.
“We are at the start of the summer here. And we have already seen triangular mergers and acquisitions,” Gordon told CNBC̵7;s “Trading Nation” on Thursday. “Actually We are in a triangular consolidation in indices with a lot of distracting side themes, such as meme stocks, that don’t have a huge impact on what’s really going on.”
Whether the index breaks higher or lower depends on the next CPI reading. he added
“This is a 30-year chart of the CPI and it connects two major highs of 1990 and early 2000. We have just reached resistance at 5% year-over-year change. and i think this will be It’s clear that the turnover to interest rate-sensitive and reopening sectors such as finance, industry and energy continues. And inflation continues,” Gordon said.
If that continues to break above the decades-long trend line Gordon said the case for some technology and consumer discretionary stocks has become increasingly difficult.
“however if we fail That might start to indicate that technology can look back and we can cycle back into [the sector]said Gordon.
The XLK S&P 500 Technology ETF is up 8% this year, less than the 13% gain of the S&P 500 QQQ Nasdaq 100 ETF, which holds big tech stocks such as Apple and Microsoft, is also up 8% in 2021.