It was good to see so much momentum bring up the rear for once yesterday. Moreover, money rotated into unloved sectors rather than the sidelines. That’s bullish.  

Spreading the Wealth

Advancers dominated in Financials (XLF) and Real Estate (XLRE), and even Technology (XLK) saw more advancers than decliners. Meanwhile, the S&P 500 is out of the relative strength index (RSI) overbought territory, even after a very encouraging intraday reversal that closed higher.

Rotation on Deck

Nosedives: every sector, except Technology, has been in a nosedive against the S&P 500 – it was great to see investors do some tire-kicking. When the time is right, cash could exit in the high-flyers, but stay in the game.

The semis (SOX) pulled back yesterday, and you needed a magnifying glass to even notice it on the charts. This rally story has more chapters to be written.