Bank stocks are rising ahead of the stress test results due out tomorrow, theres a sense that Fridays April jobs report wont be so bad and the Dow Jones Industrial Average is trending higher yet again.
Whats not to like? Well, the movement in technology shares has become a bit bothersome. The Nasdaq Composite Index is not joining todays mild up move and the big dogs of the tech universe are showing mostly red. Microsoft, Cisco and Intel all are having crummyesque days.
Technology shares have shone during 2009, playing a leadership role as the stock market rebounded from its early March lows. But over the past few sessions technology shares have seemed unwilling to join the latest bullish breath.
It could be a minor pullback since this sector has outperformed most other sectors. It could also signal something more troubling.
The stock market has rallied as perceptions of the economy have moved from Armageddon to merely terrible over the past few weeks. In order for the bull to get another leg up, perceptions will have to shift again. Green shoots will have to start looking like actual plants and shrubs.
Technology shares may be indicating some doubts about just how strong the green shoots are. While banks are getting all the attention, it will pay to keep a close eye on the tech sector in the coming days.
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