Friday, the market fell out of bed for a number of reasons, including the jobs report, leveraged ETF rebalancing, and a general sense that it was time to take some profits.

Mega cap growth (MCG) and Technology (XLK) have been bumping up against the trendline of the trading range.

Then add that traditional valuation metrics have been at extreme levels for a long time, as noted by the folks at Bank of America.

But they were still constructive in the market, and now they are voicing concerns – as their market peak checklist has ticked off 70% of the red flags.

I admit there are some yellow flags, including yesterday's action in Inno Holdings (INHD).

The company sells used phones and made $931,000 in revenue in the most recent quarter.

Yesterday, management announced a $3.0 million AI deal, sending the stock up 3,661%.

It traded 278 million shares versus a daily average of 5.5 million.

That is reminiscent of slapping dot.com on stocks back in the late 1990s and watching them surge higher.

The good news for the market is that there is rotation.

The not-so-good news is these safe haven sectors don’t carry a lot of weight.

But the most glaring aspect of the session is the resumption of Friday selling in Technology.

High beta names come under pressure from time to time – the value proposition has gotten stronger.

Think it’s a mistake to panic and to over-rotate.

That said, I’m happy with the action in housing-related stocks.

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