Much of the choppy trading we've seen recently has been the result of an exodus from high valuation names back to a more value oriented approach. It's the type of behavior that is commonly seen in anticipation of a slowing economic environment.
Below is a chart of MTUM, an iShares ETF that tracks many of the so called momentum stocks. After peaking in early March, the last two months have been very choppy with a significant downward bias.
Many of the momentum names are tech and biotech stocks that reside in the NASDAQ. As a result, the NASDAQ's chart below is quite similar.
This money, however, has not been leaving the market. It's been finding its way into more secular names, companies that sell products for which demand remains strong regardless of the economic cycle. This is partly the reason why the S&P, Dow and Transports remain near all time highs.
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