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Was the weakness at the end of the day just resistance?
Was the pop and fade a final burst before things finally ‘fall apart.’
What I will say is that today was unique in that it was the 1st time that the ‘losers’ rallied.
While we have seen the RUT have some strong days, we have up to now have seen the industrials completely suck wind.
As I have stated, the market rally has been led by 5 stocks.
On Tuesday the NDX was down on the day, closing down just over .25%
The S&P 500 was up, as was the DJIA.
But XLI, it was up 4.2% on Tuesday as the ‘pent of demand’ for old economy stocks took them to the moon.
There might be an ‘old economy’ left to salvage.
Reminder, XLI is made up of CSX, UNP, NOC, GM, Airlines…a lot of stocks that have not been benefiting from the shut down.
One might call this the ‘main street’ index
The places where people who do not live in a few small clusters of the United States.
But will it last? Could we be off to the races?
Or is XLI going to rally as the NDX drops?
Take a look at the VIX as the QQQ’s got dumped at the end of the day
With how big the ‘Big 5’ are, we could see the market lose 100 points over a week and see POSITIVE market breadth (more advancers than decliners).
Maybe that is what the S&P 500 needs in order to finally make the world feel comfortable with 3000 again.
The VIX is Yellow, but has shades of red.
We would like realized volatility to stop increasing.
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