Bifurcation Issues:  

Over the last one month period technology is back on its high horse as the second-best major S&P sector out of 11, up 7% trailing just utilities. And keep in mind this is with the disastrous showing by software Thursday courtesy of CRM and NTNX. The Nasdaq as we spoke about seems to be falling victim to round number theory backing away at 17000 (similar to the Dow at 40K) with the big reversal there on 5/23 and the bearish spinning top on 4/28. The chart below of the QQQ has recorded a cup base breakout, but notice that it has a V shape to it which does make it failure-prone. The trend is certainly up so the bears have the burden of proof, but as always one has to be open-minded to anything. The SMH is a bit extended from its recent breakout above a double bottom pivot of 227.67 and from here it can pull back 6% and still be viewed as healthy. The IGV is now 13% off its 52-week highs, with the SMH just 3% off its own, and I can not remember the time with such a large discrepancy between the two dominant groups within technology. 

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