The recent recovery in technology stocks looks "unhealthy", cautions SentimenTrader's Jason Goepfert.
At the recent bottom, fewer than 25 per cent of tech stocks traded above their 200-day moving averages. The rebound saw that number spike, but it remains below 60 per cent.
That’s “what an unhealthy market does”, says Goepfert. Historically, tech stocks returned 7.7 per cent annually when market breadth figures have been neutral. That’s not terrible, but it suggests another tech stock surge is unlikely.