This one goes right at the heart of the bull rotation thesis going forward. And I will likely follow-up later in the coming week.
First, the semiconductors, with their weekly ETF chart below, are sporting a bullish RSI reading (above 50), but we are looking for the MACD cross to turn back higher into clearly bullish territory to confirm (top and bottom panes, respectively). The semis are a logically potential beneficiary of a bull market capital rotation, as they are not extended and had not been leading for much of the year.
Next, the homebuilders, which had been prior leaders, on their weekly ETF chart second below, are barely hanging onto the RSI 50 and are still sporting a bearish MACD, also top and bottom panes of chart, respectively.
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