More Congestion Than Usual

Despite the major averages hanging in fairly well today, we are seeing a bit more congestion than usual, at least as far as bulls have been accustomed to. Typically, they have enjoy vast array of V-shaped rallies off market pullbacks in recent years. 

But when we look at a major market leader like AMZN, below on its daily timeframe, a bit deeper of a correction into Labor Day cannot be ruled out. Similar comments apply to GOOGL, and even PCLN as its post-earnings selling may not have yet run its course. This weakness in some of the tech monsters appears to be masked by the Dow up by more than seventy points as I write this.

As far as the recent theme of retail dogs coming to life while multi-year winners cool off, the same can be said even within tech and healthcare care--Note SPLK waking up after earnings while VEEV is finally correcting.

Indeed, reversion trades are becoming more chic amid the broad market late-summer congestion.