05Feb11:09 amEST

Locked Horns

At first blush it appeared as though shares of TSLA finally coming back down would be ignored by the broad market, given the opening gap higher. However, tech stocks seem to be sensitive to a bunch of earnings selloff in that space, notably software, and led the mid-morning fade lower just now. 

The issue now is whether bulls can step back in to at least keep a floor under the market whereby, once again a sideways market could easily be an acceptable scenario if individual stocks can continue to act well and benefit from rotation. 

Steel stocks, for example, have been battered and forgotten for a good while now. But AKS is making a strong case for breaking an orderly falling channel higher, seen below on its daily chart. 

In addition, oil and oil stocks are finally showing at least some signs of life, perhaps hinting at a looming rotation if tech closely poorly today. 

Overall, we should get a better feel for the extent to which this morning's tech fade will impact the broad market by day's end, since may prove to be merely buyers and sellers locking horns in the form of an argument as to just how out of line this market truly is right now.  

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