Need to Know: The ‘end of the runway’ is nearing for lofty tech and soggy banks. Get ready, says this strategist

by | May 15, 2023 | Stock Market

A new week is pointing to a perky start for Wall Street, with stock futures in the green. But one might wonder “What gives?” as old worries — banking sector concerns and a debt-ceiling standoff — lurk, and some market observers assure the S&P 500
SPX,
-0.16%
is going nowhere until those are resolved. But that index may be nearing the breaking point sooner than any Washington solution can get there, judging by the technical setup, says our call of the day from BTIG’s chief market technician, Jonathan Krinsky.

“We think we are reaching the end of the runway, where either banks need to begin to rally, or tech needs to fall. We continue to think it’s the latter and saw the start of that move on Friday,” Krinsky told clients in a note. The Nasdaq Composite
COMP,
-0.35%
didn’t go careening south, but did see its first drop in three sessions, losing 0.3%.

And Krinsky added that the largest six-weighted names in the Nasdaq are pushing into major resistance levels. That is Microsoft
MSFT,
-0.37%,
Apple

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