Investment advisor and technical analysist Katie Stockton said Thursday that the rally stocks have seen in the early stages of 2023 could start to fade in the near term as "greedy market sentiment makes for a fragile tape." Speaking to CNBC, the Fairlead Strategies founder and managing partner noted that the conditions could hit housing and Bitcoin particularly hard. However, she added that these sentiments are temporary and will not last long. "I would say it's more short term to medium term. it's not yet impacting the longer-term gauges, so that does tell us the support levels are still very much realistic," the Fairlead Strategies founder said. "I think 3,200 is probably made less likely by what we saw in January, the 3,800 levels that was tested successfully test still at relevant levels." Stockton reported that she sees resistance for the S&P 500 ( SP500 ) at around 4,228 (revised from prior 4,020) as support level rises. The S&P 500 was sitting just below 4,130 in Thursday's intraday trading. Stockton highlighted the importance of megacap stocks that have seen a lot of breakouts and pullbacks in January after being pushed down in 2022. In terms of comparing the broader market indexes, Stockton pointed out that Nasdaq 100 has outperformed S&P 500 so far this year. Looking at recent movement in the crypto space, one of the key areas Stockton highlighted, Bitcoin ( BTC-USD ) jumped more than 9% to $24.95K in Thursday's intraday action. Meanwhile, Ethereum ( ETH-USD ) rose 9% to $1,719.94. Looking at the broader market action: Nasdaq Composite ( COMP.IND ) -0.6% , S&P 500 ( SP500 ) -0.5% , Dow ( DJI ) -0.4% to 33.926. Meanwhile, take a quick look at the S&P 500 and Nasdaq Composite index performance so far this year: Crypto stocks have seen a significant run so far in 2023. While its down more than 1% in Thursday's intraday action, Coinbase ( COIN ) has more than doubled so far in 2023, although the stock remains lower by 67% over a 12-month span. Elsewhere in the sector, Marathon Digital ( MARA ), MicroStrategy ( MSTR ), Riot Platforms ( RIOT ) and Hut 8 Mining ( HUT ) have all more than doubled in 2023 as well, including a rally of more than 150% by HUT. Meanwhile, Silvergate Capital ( SI ) has lagged behind, climbing by 19%. For more on market action, see why Seeking Alpha contributor Fountainhead says, " S&P 500 could correct between 7 and 10% in the next three-four months ."
