The S&P 500 (SPX) is dislocated and cheap on 52-week routines and readying for a bounce on earnings. Technology must deliver, says Ziad Jasani in text and video commentary.

Ziad’s market strategy videos recorded Monday:

chart 1

Recorded: April 23, 11 am-12 pm
Duration: 1:13:09

If Scenario A or B is playing out as outlined by me Tuesday, the following Sectors (in order of importance) would be more opportune to swing-trade-long (Buy lines included below, if the buy lines are broken below, “bounce-off” lines included).

chart 1

Technology (QQQ, XLK, IYW)
• QQQ > $162.72 or bounce off $159.75
• XLK > $66.17 or bounce off $64.94
• IYW > $169.94 or bounce off $166.51

Healthcare (XLV, XBI, XPH)
• XLV > $82.01 or bounce off $81.22
• XBI > $88.33 or > $90.17 or bounce off $86.27
• XPH > $42.25 or bounce off $41.36
• XHE > $72.51 or bounce off $69.99 or $68.66

Materials (XLB, XME)
• XLB > $58.63or bounce off $58.18 (200-Day Avg)
• XME > $37.13 or bounce off > $35.82

Financials (XLF, KBE, KRE, KIE)
• XLF > $28 or > $28.25 or bounce off $27.08
• KBE > $47.64 or > $48.67 or bounce off $46.61
• KRE > $61.09 or > $61.90 or bounce off $60.19
• KIE > $ 31.16 or bounce off $30.80

Industrials (XLI)
XLI > $76.22 or bounce off $75.11 •

Discretionaries (XLY)
• XLY > $103.22 or > $104.66 or bounce off $101.78

Energy (XLE, XOP, XES) – If Oil > $68
• XLE > $73.60 or bounce off $71.41
• XOP > $38.84 or bounce off > $36.96
• RYE > $60 or bounce off $56 • XES > $16.60 or > bounce off > $15.86

chart 2

If the 10-year Treasury yield gets and stays below ~3% and Scenario A is playing out for equities, we can consider a short-term swing-trade (long) within the Defensive Sectors. A break below 2.7% on the 10-year could open the idea of longer-term acquisition of Defensives:

• Staples (XLP) > $51.33 or bounce off $49.53
• REITs (XLRE, VNQ)
• XLRE > $30.95 or bounce off $30.03
• VNQ > $74.77 or bounce off $73.95
• Utilities (XLU) > $51.21 or bounce off $49.35
• Still want to avoid Telecom (IYZ).

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