The Indices Are Lying Today

Today is one of those sessions where extended indices and sectors do not necessarily need to be a sign of impending rug-pulls. Instead, we could easily see the rotation game keep the indices afloat or melting higher yet. Case in point: The NFLX earnings lurch higher has galvanized most FAANG names at least for the day. We shall see if that carries over as more of them report earnings in the coming weeks, of course.

However, the larger concern beyond the semis flipping and staying red throughout the day has been the soft underlying breadth. 

Specifically, and as an example, with the XBI biotech ETF drifting higher gain today, one would think a coiled up name like GMDA, below on its daily chat, would have imminently followed-through higher after a breakout attempt (albeit which closed off session highs) yesterday.

Instead, GMDA is getting slammed nearly 6% as we speak. 

Other names which seemed ripe to rally, like PLTR, also have struggled today. 

A re-rotation into FAANG (plus comparable names like MSFT TSLA, etc.) may very well stave off an imminent broad market correction into the end of the month. But the pockets of momentum seem to be getting tighter by the day, especially with Yellen putting out a floater yesterday that crypto may be a  haven for terrorists. It is not so much what she said, as the face that she said something negative at this point that matters most--You may want to look up what FDR did with gold during his time in office, for example.