 Good morning everyone on this very first day of August Tuesday the first of August we're looking at the Dow up a hundred seven thirty five thousand six sixty nine and this is going to be really interesting why because the price is still above the nine-period moving average and every nine is way above the fourteen and the magnies still strong sarcastic slide but still very strong at eighty nine percent that blue on balance volume of the daily chart is getting very overbought however within that context in the Dow you've got rotation going on so all of a sudden if anything's weak it doesn't matter because Caterpillar has just spiraled nine point nineteen points up to up breaking to an all-time high I mean we're looking at all-time highs in the deep cyclicals that's really important to this economy it's very important to the whole concept of rotation and cyclical activity in the market economically speaking we're looking at the S&P five hundred so now you've got five hundred stocks not just the thirty stocks stalling and this is really what I'm looking at you see this big red candle from I think it was last Thursday I'm going to draw a little rectangle around to see how the market's able to participate in terms of having something strong like the Dow's moving up very nicely now a little bit of stalling motion because at forty five eighty two down six not a big deal after such a big move up but you can see that we started it's modestly making new highs and that just says not quite as strong as it was the QQQ's are down one and a half at three eighty two twenty three eighty seven ninety eight was the high the most recent high just again a stalling motion kind of a digestive phase IWM is the Russell 2000 and that's been doing IWM yep there it is down a dollar and a quarter at one ninety seven forty two under yesterday's high recovery high fascinating market cup formation we're looking at gold gold was pulling back it's down twenty one at nineteen eighty eight just stuck in this range looking at crude oil crude oil was running quite nicely and it's stalling a little bit today down forty nine cents here's the big deal we'll talk about in my show coming up the Tiger Technicians Hour yields are bouncing because the TLT is at ninety eight seventy one that's going to be I'll be back in a moment check out my report