Rotation Report: Hot market

 The market decided to go linear mid-week.  At this point, it's just looks really hot right now.  Biotech gapped 3% Friday and gave those gains up.  That's climactic, but we don't know the extent of the climax yet.  The low rate trade came back fast and furious last week and looking ahead, perhaps precious metals have bottomed.  Let's dig in.

We're seeing this shift to a more complacent market via vol term structure.

The VIX ended the week at the prior pivot level.

Breadth is seeing multiple extremes being reached.

 NYSE 52 week highs hit the highest level in two years Friday.

S&P 500 climactic volume also ran hot late in the week.  The readings are similar to that of late October, another time when too many policy bears were lurking around.

At the same time the 5 day total of new highs vs new lows is at the top of it's range.

Group Action

The S&P Transports ETF has reached new highs ahead of the Dow Index.

Materials are back-testing a triumvirate of key moving averages and the prior pivot level.

This while relative strength is testing a long term support.  It's time to look for longs.

Around the globe

Emerging markets bounced at a key spot.  Can RSI break that 50 level?

Japan continues to lead international markets while their government decides to up the equities purchases in their pension fund.

Commodities

Copper staged a bullish outside week.  Meanwhile many commodities are showing selling exhaustion in the intermediate term.  

For more: Check out some of the top reads i've compiled for See It Market's Top Trading Links.

Trade 'em well!

Disclaimer: I've no positions in any of the products or ETFs mentioned here.