Signs Of Rotation?

Another choppy session but the market is holding up just fine as it works through earnings and overbought conditions.

As expected, we saw a spike after the crude oil inventories were higher than expected, but the market wasn't able to build much momentum from that report. Fortunately, we did start to see some rotation into China (GXC), Semiconductors (USD), and even Healthcare (IHF). We haven't seen that for awhile. Meanwhile, some profit taking developed in the ag stocks (it's about time) and the airlines were shot down again.

Along with another batch of hundreds of earnings reports, we have durable goods, jobless claims, new home sales, the help-wanted index and the eagerly awaited report from Microsoft. In after-hours trading there was some disappointment in Apple's guidance, but we'll see if that continues tomorrow morning. Remember, as long as they can hold this tape above 1350-1360, the bulls remain in control. More rotation and healthy profit-taking is required and it was good to see that finally come to fruition today.