Another new record high was achieved yesterday for the market, of course what followed was a fairly dramatic decline in the technology sector, with some of the biggest names taking the biggest tumbles. Perhaps technology took a peak at the 'upside down'.... a strange world where the price of equities trend lower, not higher. Yet like the other nasty tech sell-offs we have seen this year, the buyers resurface the next trading session and record high prices return.
Today was a slow day in the market, with modest fades across the board in most names. The big question for the market is whether the breakout on the SPY above 217.50 will hold. It is important to look to market leaders for clues. I tend to look to ‘FANG’ (Facebook, Amazon, Netflix, and Google) and the banks for clues. While all closed off their morning lows I think there is a bigger picture that we need to be aware of in order to navigate the markets in the coming weeks.