Does the stock market care about the slowing pace of tax cuts, Russian collusion or who the next Fed chair will be? Well, the answer is yes and no… and it’s more no than yes if you look at things from a volume perspective. Even though our Heat Gauge reached TORRID levels on Monday, overall volume fell -12%. This basically paints the familiar picture of a typical low volume pullback day after last Friday’s unprecedented tech rally.
How do we know it was unprecedented? Let’s just say that when you’re standing in line at the supermarket and you overhear someone in the next aisle say, “Whoa how about that tech sector?,” then you can be pretty sure some profit taking is just around the corner. Volatility did get a kick today (that’s the yes part of the answer) and with both the Fed and the jobs report on tap this week, there’s a lot more stuff for the market to take in and shrug off. -MD
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