It was ugly out there today. The S&P 500 closed down 1.11% but remains fractionally positive for the week (up 0.14%). The Dow Industrials ($INDU) were down 130 points today leaving it 1.4% from it’s high on April 29th. The Dow Transports ($TRAN) made new highs yesterday but no follow through today. See Dow Theory from this morning for more on the Trannies and Industrials confirming one another to give buy signals.
There was some relative strength out of the Retailers today ($RTH) more specifically Amazon ($AMZN) up 0.22% and 0.27% respectively. Something to watch here as they keep making new highs. See Retailers & Amazon from last month for more on the relative strength in this space. In addition, I discussed the sector leadership and rotation on yahoo breakout a couple of weeks ago (see here).
I’m going to discuss this sector rotation in post that I’m working on for later this week. Healthcare ($XLV) and Consumer Staples ($XLP) should not be the leaders if this market is going to new highs. We need to see some rotation into some of the more aggressive names.
S&P500 – Down Day but Fractionally Positive for the Week (dshort)