More Musical Chairs

The market appeared to shrug off yet another terrorist attack in England over the weekend via a mixed open among the major averages this morning. Extended and potential new leaders like PYPL and SQ are green as I write this, but the gist of the action is some mild consolidation early on. 

That said, marquee Nasdaq leaders like FB and GOOGL, respectively below on their daily timeframes, are threatening high and tight base breakouts in strong uptrends. Recall that many of the "FANG" leaders did not necessarily lead the market rally last week, which bulls argued as a sign of a broadening out rally while bears countered it was a negative divergence. 

Ultimately, the Nasdaq monsters have yet to so much as budge, let alone break, which obviously favors bulls. And if FB GOOGL take back the leadership reigns this week while other parts of the market, like homebuilders, hold onto gains from late-last week it ought to support the bull case further. 

Elsewhere, Treasuries have staged an impressive rally in recent weeks, albeit in the context of an overall corrective chart. TLT is back up to a critical area which should determine the direction of rates beyond the Fed Meeting next week.