The Nasdaq fell 1% today. The semiconductors dropped nearly 3%.
Corey Rosenbloom still counted 34 stocks in the S&P 500 printing fresh 52 week highs. He reads that split as rotation. The money stayed in stocks and moved to new seats at the table.
Corey frames this entire week through one question. He wants to know whether the market is reversing or rotating.
The evidence leans toward rotation. Six of the nine sectors Corey tracks closed the day bullish.
He also pointed out that consumer staples, health care, and energy have all pushed to new highs. Sectors under real distribution don’t do that.
A true top would look different. The advance decline line would close near negative 300 or 350. Money would rush out of stocks and into bonds.
Intel, Oracle, AMD, and SanDisk took the hit today. Corey doesn’t see Wall Street running from AI. The Street wants proof that all the spending turns into cash.
Crude helped the bulls too. Oil fell 7% and slipped from the 100s into the 90s.
Corey has flagged the zone around 105 for weeks. A strong push above it would drag stocks lower.
Lower oil cools the inflation story. The odds of a December rate hike just slipped to about 85%.
In tonight’s video, Corey lays out the levels and catalysts he’s watching this week:
- 34 S&P 500 stocks made new 52 week highs today, and most hit all time highs. Financials and materials lead a list that includes Berkshire Hathaway, Visa, Mastercard, Coca-Cola, and Pfizer.
- Oil fell 7% and dropped back under 100. Corey watches 105 as the level that would send stocks lower on a strong break.
- Apple and Palantir report after the bell tonight. AMD, Pfizer, Amgen, Arista, Booking, Qualcomm, and McDonald’s follow this week.
- Friday’s jobs report carries a forecast near 63,000. A weaker number would point to softness in the economy.
- The market has finished higher one year after the midterms 20 out of 20 times. Corey notes the pattern holds regardless of which party wins.
Corey’s warning cuts both ways. Bears who shorted everything got burned in financials, staples, and discretionary today.
Bulls shouldn’t chase names that already ran 2% or 3% in a session. The election, a wave of earnings, and the jobs report all land this week.
Corey wants you sitting in the right seat when they do.
