Making Up for the Fallen Angels

With some solars and high beta China names perking up today, like SCTY SUNE, it looks like momentum traders are shifting downstream from the likes of AAPL to take on a bit more risk.

On the daily chart for Apple, below, the stock is clearly struggling today and indeed overall versus the broad market. Holding under $117.50 would now place the initiative back in the bears' hands, in my view. 

As for the issue of whether the rotation into beaten-down solars, China, healthcare, is a sign of froth in the tape, that may very well be the case. However, bears are going to need to inflict more damage on the indices, beyond the notable divergences still present.