Good Thursday morning. While our “heavy market” vibe continues, we also continue to see signs of rotational bull market action, with one sector bearing the brunt of the damage, as software stocks (IGV) are down more than 30% over the last 3 months. In a rotational theme like this, money doesn’t leave the market, it simply rotates into other areas and we’re continuing to see in strength in industrials, commodities, banks and energy. In fact just yesterday the equal weight S&P 500 closed at an ATH, as did the transports, energy and banks. 

In addition, market breadth has been strong. While tech is weighing down the S&P 500, breadth keeps expanding. Again, this is sector rotation.
With thanks to SubuTrade we have some excellent data: for the first time in over a year, 19% of the S&P 500 is at 52-week highs.

In past instances like this, the S&P 500 was higher 6–12 months later every single time.

In what was a head turner, Alphabet (GOOGL) reported earnings aft...