Equity market rotation will continue to play out, says Piper Sandler's Craig Johnson

• Yesterday's sell-off did not cause severe technical damage; the market remains resilient.
• There is a rotation out of large-cap tech ('Mag 7/8') stocks (e.g., Apple, Microsoft) and into 'down cap' stocks.
• Energy (e.g., Schlumberger, Halliburton) and Healthcare (e.g., Medtronic, Boston Scientific) sectors are showing more constructive charts.
• This 'broadening out' of market leadership is considered a 'good constructive technical sign'.

Piper Sandler's Craig Johnson believes yesterday's market sell-off caused minimal technical damage, highlighting the market's resilience and ongoing rotation. He notes a shift out of large-cap tech ('Mag 7/8') stocks like Apple and Microsoft, which show 'distributional' charts, and into 'down cap' sectors such as Energy and Healthcare, which exhibit more 'constructive' technical signs. This broadening out is viewed as a positive development.