Sector Rotation

The Sector Rotation map of the main 10 industry groups is interesting given the market gap up. As you can see, Financials at the bottom in green have fallen way off and are underperforming other groups dramatically. HealthCare (gold)  is also moving lower along with Industrials (purple) and Staples (yellow). The only groups to seem to be in rotation are Tech, Basic Materials and of course Energy because of the move lower in the dollar. The fall in Industrials and Financials should be monitored via the S&P and Dow-30. The Q's  as expected by the sector rotation map, are outperforming the rest of the market, being up +.86%, the SPY +.70, the DIA +.59 and the IWM +.33 and nearing unchanged.

 This move up in the Euro and move down in the dollar has a nearly perfect correlation with the market and is the cause of Energy/Crude moving higher. However, these parabolic rallies rarely last long before correcting.

Which is what the Euro is doing now.

Furthermore, it seems there are some US concerns that are starting to gain on European concerns as you can see the 1.0 correlation between the Euro (FXE in red above) and the market (SPY green above) is a bit weak today with the Euro making a new high and the SPY flat at the former high, refusing to follow the Euro to a new high.