Passing the Baton

Research evidence excerpt

Passing the Baton

June 14, 2026 Passing the Baton

Broadening is Back, but Tech Remains Vulnerable

Jonathan Krinsky, CMT

WHAT YOU SHOULD KNOW: (332) 400-5152 jkrinsky@btig.comTECHNICAL Market leadership is broadening again, with the equal-weight S&P 500 reclaiming

outperformance versus the cap-weighted index as Middle East-related headwinds fade.

Since the June 2 peak, breadth has improved despite Tech being down ~8%, and we

think Tech has another leg lower toward its 50 DMA. Mag7 back to its 200-day in

absolute terms and while it can bounce near-term, its relative breakdown vs. the

Nasdaq toward multi-year lows argues for caution on that cohort. Financials are aSTRATEGY

standout, with banks breaking out and capital markets coiled near highs. REITs are

nearing a meaningful base breakout (VNQ above $100 implies ~$117), LatAm looks

timely after a pullback to key support (with Brazil reclaiming its 200-day), and copper is

consolidating at a high level in a way that favors another leg higher. Consumer groups

are also worth watching, as Discretionary and Staples are consolidating but appear

positioned for further upside. In summary, we think we are still in a window where

positioning has not fully unwound, and therefore breadth can improve even as the tech/

AI trade pulls back further.

■ The Broadening is Back. Equal-weight S&P has started to outperform the cap-

weighted version like we saw in late '25. While the gains were given up in the spring

due to the tensions in the Middle East, that now appears to be heading in the other

direction which suggests RSP > SPX can continue to work higher.

■ Tech Can Still Push Lower. Breadth has actually improved since 6/2 despite SPX

lower as 6 of 11 sectors green, while Tech off ~8%. We think tech still has another