It was another day of rotation Monday, but this time it was the big-cap FAANG names and Apple (AAPL) , in particular, that were the beneficiaries. The DJIA lagged primarily due to the financials, which is the reversal of what occurred last Wednesday when the Dow outperformed and the Nasdaq lagged.
Breadth was close to two to one negative and there were 175 new 12-month lows to 125 new highs. While there were a few pockets of momentum in biotechs such as Amarin (AMRN) , Abiomed (ABMD) and Alexion Pharmaceuticals (ALXN) it was a mixed bag as traders didn't find the same sort of excitement that the cannabis stocks created last week.
The China trade news was shrugged off once again and the political issues out of Washington sucked up some oxygen but didn't appear to be much of a market catalyst. What mattered most today was the typical seasonal weakness and anticipation of what the Fed may have to say on Wednesday. Bonds were weak again and there is going to be much focus on the iShares 7-10 year Treasury Bond ETF (IEF) as it sits near recent lows.
Without the strength in the FAANG names and the Nasdaq the bears would have been able to stir up a little more worry. Still, although there was weakness, it was just another routine day without any major change in the character of the market.
Have a good evening. I'll see you tomorrow.