The sloshing around of the S&P 500, led by a gallantly mediocre tech sector, shouldn't come as a surprise to investors after the run we have had since the recent lows. This is simply a function of the markets reacting to a convenient stopping point to assess what comes next.
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SPX
There is a distinct possibility that technology will underperform from this point into late summer, which sets the stage for continued sloppy behavior for the various indices. Too many tech names have either hit important resistance points and are now reversing or are in no man's land in terms of price. Given some type of massive risk on movement by asset managers the sector will likely be thin on the bid side.
It is by no means a death knell for the market as there should be continued rolling movement with a general upside bias for the S&P 500, led by financials.
If there was ever a summer to take off in order to avoid the psychosis inducing gaze of the market during a time when it will be searching for victims of all stripes, it will be June-September of 2016.
Below is a musical reminder of the best course moving forward to be played as frequently as necessary to avoid monetary calamity.
