Market performance as of late February 2026 reflects a critical technical juncture for major global indices. The S&P 500 currently trades in a narrow holding pattern between 6,800 and 7,000. While the index remains in an overall uptrend, market breadth has moderated, with approximately 63.02% of constituent stocks trading above their 200-day Simple Moving Average (SMA). A decisive technical threshold sits at 6,730. Maintaining price action above this level is viewed as constructive for the long-term trend. Conversely, a sustained break below this support could signal a transition from the current bullish phase into a deeper corrective cycle. The technology sector continues to serve as the market’s primary engine, though performance is increasingly polarized. Nvidia has emerged as a relative strength leader, posting a year-to-date gain of 3.4% and holding firmly above its own 200-day SMA. In contrast, other mega-cap peers have faced significant pressure, with Microsoft recording a double-digit loss of 19.6% so far this year. Global macroeconomic factors are introducing fresh volatility into these technical setups. U.S. GDP growth for the final quarter was reported at a lower-than-expected 1.4%, influenced by recent government shutdowns. Additionally, core PCE inflation has accelerated to 3.0% on a year-over-year basis, complicating the outlook for interest rate adjustments. Yield curves have reacted to this data with 10-year Treasury yields hovering near 4.09% and 30-year yields reaching 4.73%. These rising rates are testing the resilience of stocks currently trading near their long-term moving averages. In international markets, the Indian Nifty 50 has shown resilience, holding near the 25,482 level despite selling pressure at higher elevations. Analysts note that as long as the index stays above the 24,500 zone, the near-term structure remains positive. Sector rotation is becoming more evident as investors pivot toward defensive stability. Large-cap segments in metals and consumer goods have seen technical outlooks upgraded from mildly bullish to bullish. Meanwhile, the IT sector remains a drag on broader averages due to shifting sentiment regarding software pricing power and high capital expenditure. The 200-day SMA remains the definitive line in the sand for the current bull market. While the primary indices still hold above this baseline, the narrowing participation and high sensitivity to inflation data suggest a phase of heightened tactical caution for the remainder of the quarter.