Art Hill: As Tech Stocks Explode Higher, Odds Build for Summer Correction

Jon Banking

Most of the major averages, including the S&P 500 and the Dow Jones, have been trending sideways except for the Nasdaq, led by tech giants Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), and Google (GOOG).
Art Hill of StockCharts.com told Financial Sense Newshour that a major market reversal is unlikely but that investors shouldn’t be suprised by a summer correction as the Fed prepares to raise rates again this June. Hill also shared his views on the US dollar, interest rates, commodities, and oil.
Tech Ahead, Markets Somewhat Flat
In terms of momentum, US technology stocks are dominant right now and investors are willing to pay pretty high multiples to own them.
‘They have been the clear leaders, and they are helping to push the Nasdaq – and the Nasdaq 100 in particular – higher,’ Hill said.
Similarly, the Dow had a surge in that November-December period, then moved flat into January, and experienced another surge from mid-January to the end of February and early March. It’s been flat now, Hill noted.

This post was published at FinancialSense on 05/10/2017.