DOW is the strongest index in the market......

Market sentiment has shifted in a big way......

Before.... Nasdaq & SOX were the strongest sector and making series of new all time highs

S&P 500 was strong and making series of new all time highs.....

Dow was also making new highs......

NOW......

SOX is trading 7.18% below its all time highs, its lowest point 6 trading days ago was down 9.16%

Nasdaq is trading 3.00% below its all time high, its lowest point 6 trading days ago was down 3.64%

S&P 500 is trading 5.33% below its all time high, its lowest point 6 trading days ago was down 11.31%......

DOW continues to make new all time highs on a daily basis..........

RSI is reflecting above scenario.....they are :

DOW          RSI @ 68.59

S&P 500     RSI @ 60.93

SOX            RSI @ 47.50

Nasdaq       RSI @ 47.42

NOW...the question is....is this a permanent shift taking place or IF it is going to revert to previous trend......

I think...it is a trend which may remain in place, until earnings start flowing in in mid July.

Those who are looking @ long term ideas, it may be wise to allocate 50-50 in strong and weak index...

Markets do go through major change......

Technology may have taken a back seat for now, but may come back in a big to make series of new highs.

Recognizing major shift is key to avoiding poor performance.

Good luck with your own research and interpretation of current TAPE.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed