Yesterday saw a slight uptick in accumulation, but volume was once again light. This morning, the ECB announced a cut in interest rates from .25 to .15 which at first had a negative reaction in the futures, but after the shakeout, stock futures turned around and are now up.   The ECB cut its deposit rate below zero to counter deflation.

For the first time in 4 trading sessions, the internals were slightly positive in the NASDAQ Composite, and also in the small indexes which showed that buying interest is not dead in the higher risk groups like biotechs.  The XBI, the SPDR biotech index was up 2% as rotation accelerated into biotech stocks.  Exploration and Production stocks remained strong, and Semiconductor devices continued to have demand.  I will discuss this rotation at the online meeting today.  If you did not receive an invitation yesterday, please let me know.

Volume continues to be light in most major indexes. The DJT and my Chinese Related stock index showed higher volume yesterday as the airline stocks continue to show strong accumulation, but the Chinese index was hit hard by solar stocks with an announcement of new tariffs on Chinese imports.

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