It was one of those days when the indices didn't provide a very accurate picture of the underlying action. Breadth was close to even and the DJIA had a gain of around 0.39% but the Nasdaq 100 ETF (QQQ) was clocked with a loss of 0.78%.
The problem today was heavy pressure on big cap technology. The FAANG names -- Facebook (FB) , Amazon (AMZN) , Apple (AAPL) , Netflix (NFLX) and Alphabet (GOOGL) -- took some hits. There was heavy pressure on chip stocks due to negative comments about Lam Research (LRCX) and some of the hot biotechnology names reversed.
The good news was that the bears were not able to generate much downside momentum. Many of the technology names that were hit bounced back late in the day and there wasn't a rush for the exits.
The G7 meeting this weekend may cause a little hesitancy to embrace the market into the news but the North Korean summit meeting is helping to keep sentiment positive despite the trade war talk.
There were some reasons to play defense today and I raised my cash levels but it may just be a healthy pause rather than the beginning of something more dire. We will need to increase our vigilance and watch out for this rotation that has been causing some issues lately.
Have a good evening. I'll see you tomorrow.