Nervous Nasdaq?

Conventional wisdom states toppy markets display certain characteristics. It is uneven, volatile PRICE action like we witnessed the last 2 sessions. Bottoming behavior shows very tight, gradual rounding action. Is the erratic trade a function of algorithms, or is it classical concerning conduct? Of course no one knows the correct answer, but Friday was a constructive session. The Nasdaq bounced where it needed too, although traditional judgement believes that the 50 day SMA wants to come into contact in a light volume, slow and steady way. Friday was anything but. Investors want to see the best in breed technology group lead, and should remain steadfast as you leave the party with who you arrived with. The sector should be given the benefit of the doubt, and as many declare how its demise is nearing and that rotation will leave the space sputtering, if one was betting their money it should be put to work within. The XLK fell more than 4% this week, being outshined by every sector except energy. We will soon find out if this week was just a refreshing pause, or the start of something more sinister.

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