Role Reversal Continues

Even with some of the more prominent components of the iconic Dow Jones Industrial Average sporting deteriorating charts, one way bulls can prolong the party is for them to keep reviving the lies of previously-destitute Snapchat, Twitter, Twilio, among others. It is often said that rotation is the lifeblood of the bull, and that applies with seemingly unflappable monsters like Boeing, seen below on the first zoomed-out daily chart, below. 

Boeing, as you can see, is clearly "bending" after rallying from the upper-$120s in late-2016 to a recent high of $371.60, accounting for an impressive gain in what is, by far, the most heavily-weighted Dow holdings in the DIA ETF (more than 9.3% of the ETF is BA, and GS is in second place just over 7.3%) 

Looking out into summer, I expect BA to eventually test its 200-day simple moving average, currently at $267 but still clearly rising--The 200-day m.a. test seems more likely than not after years of not coming close to it. 

As far as TWTR, the second daily chart, below, shows the stock snapping back nicely today after yesterday's weakness. The manner in which TWTR has completely ignored the market's volatility this winter must be viewed as bullish by even the most steadfast TWTR bear. Simply put, there is much to rail against in terms of the TWTR business strategy and various platform policies. But as we have noted previously, the market could easily have priced that in during TWTR's time in the wilderness in recent years.

Without question, if bulls can continue to sustain these types of rotations it will remain difficult for bears to extrapolate BA weakness (or even a name like Kroger, for example) for the rest of the tape.