Another soften open with weakness in the tech-led Nasdaq Composite is adding to the nonchalant nature of the market and many traders of late. It almost seems like there is no need to do much of anything, since no one is worried about missing a big move. I am seeing a fair amount of red on my screens, but also quite a few stocks slightly green.
The transports and materials are showing good relative strength thus far, and the financials are not giving much back as well. Previously, when the financials had seen strength they would quickly give back the gains, demoralizing bulls. This time, though, the 3%-plus move in the XLF ETF last week is only seeing a modest giveback.
I continue to observe the sector rotations taking place, in lieu of looking at Apple as the entire market. The test of mettle for the bulls remains seeing other stocks and sectors set up and breakout even if the Nasdaq is sluggish. As an example, both the trannies and copper mining giant Freeport McMoRan are not apparently disturbed by the action in the Nazzy this morning. Moreover, sentiment is consistent with a bull market pullback that will eventually resolve higher.
As we get into the afternoon, I am looking to see if the bulls can close us strongly and the institutions come in to buy shares from retail sellers.