Sector Rotation Underway

As you can see from the QQQQ chart below, this market has not yet found a floor. Yesterday's sell off after the gap fill projects at least another minor leg down. We suspect that options games played during expiration week next week will shake the QQQQ down below $40 to get the crowd really bearish. This would be a great buying opportunity. Strangely enough, individual stocks don't look nearly as bad as the index charts do. This looks to us much more like sector rotation than it does a serious trend threat. Money coming out of commodities is starting to move to other areas; we think tech. There certainly hasn't been the broad selling pressures that are taking down the whole market here. Yesterday there was some late day program trading that shook a lot of stocks, but most of them recovered quite nicely into the close as bargain hunters snapped them up. Shorts are likely to get burned in the next week or two.