Technology Keeps the S&P 500 Index in an Uptrend While Other Segments of the Market Struggle to Find Footing

J.P. Morgan's technical strategy chartbook notes that Technology has kept the S&P 500 Index in an uptrend while other segments of the market struggle to find footing. The S&P 500 defended key short-term support in the 7500s, keeping the bullish trend intact with potential targets in the 7922-8052 resistance area, whose upper end is defined by longer-term channel resistance extending from the 2009 GFC low. However, the rally has decelerated through the summer below trend resistance as the yield curve flattened, a combination that historically aligns with a late-cycle environment. Market breadth is very thin: the S&P 500 Equal Weight Index and Russell 2000 Index remain under steady selling pressure, nearing key medium-term support near 8300 and 2730, respectively. Within Technology, the SOX Index rebound has extended into the 12362-13047 resistance zone and needs a sustained break above 13050 to signal the correction is over;