Sectors are Dropping Like Flies

There's a lot of risk-off behavior ahead of tomorrow... Tech stocks are under pressure after their recent scream higher.

Good afternoon:

A quick update. One of the things I didn’t get a chance to articulate in recent days is that we hit a pretty solid wall on “selling.” The number of stocks in breakdown mode got close to zero, which can coincide with a top. We have support across the S&P 500, but the selling pressure hasn’t been this low since the start of larger selloffs in December, February, and March.

Right now, short-term momentum is fading at a time when the longer-term trend appears intact. But that can spill over to daily weakness… Which is why we’re looking for multiple days of weakness before making any bet in a direction.

Typically, the buying cools down, followed by some lower-volume squeezes. Then, the retail sector gets sucked into a rally - before there’s a lot of profit taking. I was talking to someone today about this situation, and we noted that good companies are moving higher off that April 8, beating earnings, and then selling off.

There is selling happening right now that signals de…