Tesla Headed Down the Road to Twin Peaks

Despite small caps having the audacity to flip red for the first time in what seems like weeks, the rest of the tape seems to be business-as-usual for bulls. Once again, the mega caps in the Dow are outpacing the other major averages, perhaps masking some mixed action below the surface. 

But top-callers continue to grow frustrated by the day, as even the most extended of charts fight off a modest pullback. 

My main focus at this stage continues to be to sell into extended strength if my longs reach that condition, and also seek out the next rotation. 

Specifically, some energy and materials names are sporting attractive charts and possibly turning the corner, long-term. A rotation into energy, especially, ought to be a bullish development insofar as bringing back to life a part of the market which had been a drag for the last several quarters 

And if the likes of TSLA and a few major Nasdaq marquee leaders continue to struggle, as they have of late, then momentum will need to rotate to avoid a broad market correction. On the TSLA daily chart, below, we can see the potential for twin peaks, or a double-top. But that theory is rather premature at this point at the pattern would need to see much more price weakness to confirm. Still, TSLA has had a rough couple of weeks and likely needs to hold this $335 area to stave off the many hungry bears still in the name, waiting in the trees off the side of the road on the way to Twin Peaks.