Technical Stock Market Briefing for Day & Swing Traders
| By Harry Boxer, Technical Market Analyst
Markets remained volatile this past week, with the S&P 500 dipping into correction territory on Thursday, falling 10% from its February 19 high—its first 10%+ correction since 2023. While the S&P 500 surged 2.1% on Friday, recovering some losses, it still ended the week down 2.2%—its fourth consecutive weekly decline.
Nasdaq & Small Caps Under Pressure
The technology-heavy Nasdaq hit a low down 14% for the year before rebounding slightly. Meanwhile, the Russell 2000 Index, a benchmark for small-cap stocks, came close to entering a bear market, defined as a 20% decline from a recent high. The Russell finished the week down over 16% from its November 2024 high and dropped 1.4% for the week.
What’s Working in This Market?
Despite the sharp pullback in U.S. stock markets, certain areas of financial markets have outperformed and remain positive for the year:
- Value and cyclical sectors have outperformed tech and AI stocks
- Bonds have outperformed stocks as investors seek safety
- Many international markets, including Europe and China, are up 8%-10% YTD
Within the S&P 500, five of its 11 sectors are positive this year. Health Care, Utilities, Consumer Staples, and Energy lead the gainers, while Consumer Discretionary (-15%) and Information Technology (-12%) are the biggest laggards.
Gold & Silver Surge to New Highs
Gold prices set a new record on Friday morning, briefly surpassing $3,000 per ounce for the first time. Silver also rallied past $34 per ounce, reaching its highest level in five months. Year-to-date, gold has climbed over 13%, showing continued strength as a safe-haven asset.
Market Rotation & Valuation Adjustments
Coming into the year, the U.S. stock market, particularly mega-cap tech stocks, was extended from a valuation perspective. Investors have rotated away from higher-valuation stocks, applying downward pressure to broader market returns.
However, pullbacks like these are normal. Historically, markets experience one to three corrections of 5% to 15% per year, making this a standard market reset rather than a major structural breakdown.
What’s Next?
With market volatility increasing, expect more extreme swings in the days and weeks ahead.
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