Monday's activity was another example of the battle around the 200 day moving averages of the major indexes. The battle got louder and bloodier after the move up at the opening bell. The only encouraging aspect for bulls came late in the day as most indexes closed well off their lows.
Distribution days are beginning to mount, although they are not yet high -- S&P at 4 days and NASDAQ at 3.
We are still 100% invested but clearly there is some thrashing going on at this level after 10 straight weeks of gains. It could be sector rotation or it could be profit taking. Likely a bit of both.
Certainly in the small to midcap growth area there was flat out profit taking Monday as FFTY lost about 1.3%. At the same time the FAANG stocks we have been avoiding had a strong day; so strong that QQQ was up despite the NASDAQ being down.
Futures are up slightly this morning fifteen minutes before the open.
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