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Bull markets often correct through sector rotation. We saw one of those rotations last week. While many tech momentum stocks were in a pullback mode and tested their rising 20 and 50-day moving averages, we saw some notable breakouts in biotech, building materials, gold, and semiconductors.
Last Friday, we even saw financials breaking out. All major banks passed the stress test and now are likely to return some of their cash to shareholders. This could lead to anther sector rotation next week.
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