SPX - Are you catching the rotation trends? SPX is still holding very bullish price action. Technicals are pointing towards higher price and todays inside consolidation day certainly helps digest recent gains.
Along with the flat indices market session, we did observe some massive capital rotation trends.
Financials saw a pretty strong down move across the board. JPM / BAC / C all saw large outflows. We were positioned on the short side of financials and took profits on JPM puts.
Even with the big selloff in financials, SPX held up surprisingly well.
Capital simply rotated instead of outright leaving the market. Bullish Signal.
Technology, Energy, Materials, Health care, Transports all saw capital inflow trends.
Rotation into under preforming sectors is a sign that markets could be staging another healthy leg up.
We still have an upside target over 6300 on SPX.
