While the Dow and S&P made new all time highs on Monday, the Nasdaq and in partcular the previously unstoppable FANG stocks, Facebook, Amazon, Netflix and Google have stumbled. Last Wednesday these four former leaders of the past 24 months fell 3.7% in one day, that's $60 billion in market cap. Then yesterday, while the Dow and S&P once again made all time highs, these four flopped again, all closing lower on the day, with both Facebook and Google generating Sell Signals in their Intermediate Term models (neither stocks are in our portfolio...yet).
The significance of this divergence between the blue chip indexes and the roadrunners of the past two years is not readily apparent. But in the coming weeks, either the FANG group makes up lost ground, or, the blue chips follow with Sells of their own.