Coach Mark here.

Fascinating price action today. As the rotation trade enters day five, the charts are telling some interesting stories. Always good to listen to the charts as they have many profitable tales to tell.

Weakness in tech and growth is evident today. This is creating a down day in the S&P 500 due to the oversized weighting of growth stocks within the index but outside the main price action there are some interesting tales.

• As of this writing, despite the “market’ being down, more sectors are in the green than in the red.
• S&P 500 and NASDAQ down but the Dow Jones Industrial Average up.
• Your average stock is essentially unchanged as measured by the RSP.

Watching intraday strength in areas such as the DOW in the face of sizeable weakness in the S&P 500 is the word of the day, fascinating. There is always a chance that the weakness of tech spills over to other areas of the market but we now have seen weakness on tech intraday charts for several days now and we have seen no evidence of this. This will make setups in “rotation” areas very appealing in the coming days and week if this pattern holds.

And speaking of tech, looking down the road I have a feeling that tech will get its turn again. That is how rotational markets work.

Have a fantastic Wednesday!

Energy Sector (XLE)

Do not tell energy that the market is having a down day. A beautiful chart from both a theta and delta perspective, expect to see energy stocks discussed a lot in the coming days if we continue to get good pattern development such as this.

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