The market rally has improved dramatically, but could be due for a pullback. Square, JPMorgan and Apple supplier Skyworks are near buy points.
What I'm about to say is going to unnerve some of you, but it's the absolute truth: A stock market crash might be imminent. Through April 6, 2021, the tech-dependent Nasdaq Composite (NASDAQINDEX: ^IXIC) has doubled, while the benchmark S&P 500 (SNPINDEX: ^GSPC) and iconic Dow Jones Industrial Average (DJINDICES: ^DJI) were up a respective 82% and 80%. Although 10-year Treasury yields have doubled over the last five months, a 1.7% yield is still historically very low.
All three indexes have rocketed to new all-time highs, with the tech-heavy Nasdaq Composite leading the charge. At its best, the Nasdaq more than doubled in just 11 months' time. A number of factors, including sector rotation, higher Treasury yields, and valuation concerns, have weighed heavily on some of the market's growth stocks of late.