How great is it that one of the top traders out there like Scott O'Neil comes out with a blog post to tell you to be careful two days after a significant sell signal on the index? Does the Wall Street Journal do that for you?

Now this classic sell signal puts a ton of weight into the sell side of the equation.  AAPL responded yesterday by breaking below the 10 day to close at the low on higher volume.  A distinct change in character.  However,  the buy/sell equation is made up of much more than a couple of signals.

On the upside. IBM is picture perfect tightening above it's 10 day line.  Recent strong IPOs continue to look strong.  Recent pocket pivot in RATE is tightening with classic strong action.  BIDU has ignored it's classic short sale setups over the last two quarters and is back within 15% of it's highs.  If you are using the LTD 1978 as a model for LULU as the new retailer leading for several years out of a deep bear market, you might expect LULU to be getting close to a sell off.  It is showing nothing but positive action.  LULU has just finished it's second test of the 200 day line.  LTD in 1976 - 1978 had a third susccessful test of the 200 day. Retailers today like ASNA, HOTT and COH are consolidating above their heaviest sets of trade. 

My read is that we are about to undergo a significant rotation of leadership.  Danoff has the muscle to keep these other sectors strong so that he can continue to find buyers for his shares of AAPL.