The Rotation Continues:
The Nasdaq continues to be where most of the positive action emanates from although there are some legitimate concerns. There seems to be an abundance of chatter, as just recently it seems like much of the movement is being very concentrated among the big names. That is showing up with a downturn in the Nasdaq Advance-Decline line even though the benchmark is moving higher. Notwithstanding the reversal today of course for the tech heavy index off the very round 12000 number, which is also occurring right after a double bottom breakout. And we know the best breakouts have a tendency to work right away, so that is something to be concerned about. Wednesday registered bearish engulfing candle, not optimal, but lets see for the rest of the week CLOSES out. The group overall has been making it a habit recently for being at the top of the major S&P sector leaderboards and today was no different being the second “best” of the 11 major S&P sectors, but still CLOSING lower by 1% via the XLK. The SMH CLOSED the second straight session off session highs, recording a bearish shooting star, and this is not something bulls want the group to be accustomed to.