The gap-up open on Monday morning was an invitation to sell into the strength in anticipation of another intraday rotation, but the market seldom makes things that simple.
While there were some fades in the early going, the main theme ended up being rotation. Money rotated out of the Nasdaq and S&P 500 and found its way into the Dow Jones and Russell 2000. Oil and natural gas-related stocks performed well, and there was some strength in financials, as well, but technology and growth names struggled.
Breadth was not bad with around 4,600 gainers and 3,400 declines, and there were a decent amount of 10% movers. Traders still have a speculative appetite, and they were particularly interested in some energy names now.
The good news is that this continues to be healthy corrective action. It may be difficult to make much upside advancement, but many stocks are seeing some healthy chart development as they find support levels and work off overbought conditions.
We still have several weeks of poor seasonality, before we head into third-quarter earnings, so it is probably a good idea to give this corrective action a bit more time to work itself out, but this is a very healthy process, and it is making me optimistic that a new set of opportunities are quickly developing.
Have a good evening. I'll see you tomorrow.