Technically Speaking – March

March 2, 2026

Long Term Resistance SP500:  7,010

Long Term Support SP500:   6550 then 6180

Historically, February is a flat month. This February we saw the market drop by about 1%, marking the 4^th down month in the last 12 months. This was mainly due to investors becoming more cautious about artificial intelligence. However, the nerves are not coming from artificial intelligence itself. The nerves are coming from what artificial intelligence could do to other sectors of the market, along with the job market. We are seeing more and more companies evaluate which jobs are necessary and which jobs could be replaced with artificial intelligence. This is not necessarily a bad thing; it is just a shift in the job market. I believe artificial intelligence will help create new jobs that we have not even thought of yet, just like we saw happening through the rise of the internet and smartphones. In the short term we could see some volatility because of the uncertainty. Investors become more cautious when uncertainty increases. Nvidia is the world’s largest company by market cap and continues to be the barometer for what is going on in the artificial intelligence sector. And once again Nvidia reported better-than-expected earnings and revenue. However, in response, the stock dropped 5%. This shows how investors are currently feeling about the AI world. The good news is Nvidia continues to beat earnings estimates and has positive outlooks for the industry.

Investors are still rotating out of tech and into other sectors, especially value. This is evident by how the equal weighted S&P 500 has been outperforming the S&P 500. This has presented some opportunities to buy into good tech companies that have been trading high. When good companies go on discount, it can be a good time to start a position if you have been waiting. However, there are still risks that are present in the tech sector. Wholesale inflation came in hotter than expected in January and that spooked investors. If the Fed looks at this and decides to slow down the rate cuts, the market will not like that, especially the tech sector.

My mindset is still the same as it was a few months ago: be cautiously optimistic in this market. We are at the beginning of the AI revolution and the progress we will see in the next 5 years can change the economy as we know it today. There is the possibility of short term volatility from the current geopolitical landscape, but as long as tensions do not escalate further the markets should be able to hold strong. The S&P is still holding strong in a trading range and continues to test the 7,000 mark.