The Glowworm Turns

With the meat of a busy week still ahead of us, insofar as the FOMC tomorrow and various Mag7 (and other big ones like ARM KLAC LRCX) names reporting in the coming days, not to mention Thursday morning's loaded macro slate, we have a decidedly familiar trading session taking place today. 

Specifically, the rotation game.

Money is coming out of high beta/AI parts of the market and rotating to the likes of Apple, big banks, some small caps, defensives, and Dow names in general which have been out of favor like BA SHW. And even then the dip-buyers are giving it a go in the semis, well off session lows as I write this though still soundly in the red. 

This constant tug-of-war may be part and parcel of the "summer doldrums," or technical dispersion as it is known. But I still suspect it is the last gasp of a bifurcated market making an, ultimately, unsuccessful attempt at sustained rotation from leaders to laggards.

With leaders wobbly and breaking down (see South Korea ETF on the first daily chart, below), in addition to more and more mature tech names giving up the ghost of their prior rallies (INTC ORCL and GLW, the last one on the second monthly chart, below, affectionately known as "glowworm" due to Corning's ticker symbol), the pressure is enormous for Apple to piggyback the entire market is some of the rest of the Mag7 names cannot muster blowout earnings and, most importantly, reactions to the upside.