Markets began the week in old “Mutual Fund Monday” fashion, and finished higher, but well off session lows. Almost like an early “Turnaround Tuesday”, benchmarks gave back nearly half their early gains. The Nasdaq fared the best after all was said and done, rising almost 1%. The Nasdaq’s daily chart has now ended up for 5 consecutive days, starting to cement its lead over the S&p 500, which was halted at its 50 day SMA today. The tech rotation grows, and the Nasdaq did close above its 50 day SMA, and the index has the look now of a double bottom pattern, with a trigger of 3489. That lies just more than 1% above today’s closing price, and of course the larger 3500 psychological number is the real line in the sand on a closing basis. Along with the rotation into the techs, other sectors making moves are the aerospace and retail groups. The home builders are still getting clubbed with 2×4’s, pun intended, with many former best of breed names like LEN DHI TOL, all residing below their 200 day SMAs, and all were lower on a lukewarm tape today. This circulation of capital is healthy. Of course some sectors will be dogs, including the former high flying ag group. Former best of breed name CF, made a fresh 52 week low today, and MON recorded a bearish outside day losing its 200 day SMA.
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