Tech Still The Flavor:

If one were to look back at the 11 major S&P sectors over the last one-month period, they would see not a lot of participation in the upside. In fact, just two are in the green for the time frame, energy, and consumer discretionary (crowding the bottom is just what bulls would want to see with defensive spaces of healthcare, staples, industrials, materials, and utilities). To me, this suggests that many of the growthier groups are well rested and ready for a strong year-end run. Was the swift downdraft of 5.7% from the intraday highs on 9/7 to the intraday lows on 7/20 enough? It seems like a long time ago but remember last week AAII bulls plunged. And Tuesday started the session higher and held firm even after a couple of somewhat sharp pullbacks, and that was the opposite of what occurred most of last week. Are the tides starting to change into the bulls favor again? The fact that the tech-heavy index did not roll over has to be considered impressive. Of course, we have FOMC tomorrow, so expect more volatility. This choppy year has been a tradable one, not so much for those trend followers. Trade accordingly.

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