Markets recorded a listless day to start the week Monday, as both the Nasdaq and S&P 500 both fell .4%. As the markets continue to trade sideways, under the hood, its makes sense to pay attention to what type of rotation is going on. Builders have been descending for sometime, once one of the strongest groups that did a lot of the heavy lifting early on. Transports are starting to show signs of fallibility, with airlines doing ok, but rails sputtering. Biotech has remained strong, and even some retail names in the face of elevated gas prices are shining. There is even some merger activity backing up the thesis. Names like MFB BKR SKS JNY have been in the mix. The retail ETF RTH, has traded remarkably tight, with a 3 week tight trigger of 55.60 currently in place. It is very illiquid, which makes the tight trading even more impressive. Old, very visible tech names like AAPL FB,, up 1.5 and 4% respectively today on a down Nasdaq, are starting to act much better than peers (like GOOG just missed a bearish outside day today) that participated during the latest bull. They trying to say something about tech rotation, or is that an omen?

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