Good cop (QQQ/SPY ratio) is holding the bull flag and turning up. I assume the happy stuff out of Microsoft is boosting spirits. Reference the original Good/Bad cop update.
In light of the above, bad cop (XLV/SPY) is not surprisingly weak and threatening the potential short-term bottom we noted in the last Good Cop/Bad Cop update.
Also of note, the relative bullishness in Tech is aligned with the current Goldilocks view as it appears the machines are puking inflation trades and cyclicals and spinning a tale of safety in Tech. This is all according to plan, but the plan also looks out ahead for failure as these rotations prove futile if/as the bear market becomes more pervasive.
For now though, it you’re going to pick up nickels in front of the steamroller, the shiniest ones have been and still are Tech related, especially the bigger names. I think the market is thinning out as it rotates to what it perceives as the safest names while trying to invest somewhere, anywhere.
BINGO