Strong rotation

We have signs of a strong rotation out of the FAANG stocks this morning and into the bluest of the blue chips, the Dow. This is killing the tech indexes (NDX is more than -100 points) while the Dow was up more than 100 points. Interestingly, the RUT rallied while the techs got hammered. This kind of bifurcation in the stock market is not at all healthy but it could be more end-of-month related than anything else.

It's hard to see the NDX daily chart without seeing a top in place with yesterday's high (yesterday's rally in the techs was weaker than the others). The RUT still looks like it has some upside potential although ready for a pullback. SPX tried to rally but has pulled back to the flat line. Pick an index and you get a different view of the market and that alone tells us to stand back and wait for some clarity, which might not come until we get through the end of the month.

NDX has broken its short-term uptrend line from October 25th and is currently below its 20-dma near 6326 so we'll see if it can at least hold on a closing basis. But regardless, I'm not sure how to spin something bullish on its chart right now.

NDX daily chart