Its a very interesting market we have here, putting on a fine show and exhibiting a huge divergence between the NYSE and Nasdaq. Just look at this chart and think:
Key features to note:
- Massive expansion in new 52 week highs on Nasdaq today (green histogram, circled on right) Talk about outperforming from low expectations, so many have been beaten down.
- Advancing/Declining volume – (second panel from bottom, a rising a/d vol line (red) means that declining volume is rising). NYSE names are still seeing an increase in selling despite the “rally”. Cyclicals are being hit hard. Other areas may get infected too.
Clearly the rotation to technology that we’ve been discussing is being taken to extremes today, but what we don’t know is if concerns over the economy (evidence is weak performance in cyclicals) will infect tech with a similar sickness. DELL is not that influential a stock to prop the entire market up, not even the tech market up, for long.
Sometimes a big bounce is just the right time to lighten the load…
05.05.13 12:40 #