TMTB Evening Market Musings

After reflecting a bit on the price action today, a few tea leaves stood out that the shift to unloved/IWM-like stocks and away from consensus Mega-caps could continue to have legs, potentially causing the QQQs to be choppy in the near-term.

Many of you readers know that we here at TMTB like to look at reactions to morning news items/earnings as tea leaves for broader market patterns, especially when we see a change in character. We always like to ask ourselves if these reactions are rationale. Stocks going up on bad news is a bullish sign and stocks going down on good news is the opposite. Over the last couple weeks, there haven’t been many tea leaves to point to a change in character in the market’s behavior.

However, a few tea leaves from today are giving us pause this evening: