The S&P closed below its 20-day average while the NASDAQ continued to power higher yesterday. Mixed performance in the indices can easily be explained by one word: Banking.
The S&P and Dow are loaded with banking stocks. The NASDAQ does not have much exposure to this very weak sector. What message the weak banking sector is sending about the market's macro issues here is probably not a positive one.
Even so, we continue to find good long side set ups. On top of that, near term sentiment is highly negative. Finally, we are entering one of the most bullish of seasons. Adding up all three of these factors outweighs the negatives for the trader. Let long term investors worry about the economy. Traders should be focused on the tape that is right in front of them.
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