Rotation and Intermediate highs

The business cycle moves in 4 cycles.

First Recovery:

• Banks

Cyclical/early recovery

• Retail
• tech

Industrial

Late cycle

• Materials.

At intermediate Market highs.... My perception is that the rotation is similar.

that as we make our last highs, the Breadth weakens. And based on where we are in the cycle.... I purpose that we are about to move into the bottoming of the Early recovery. And as much as Jim Rogers wants to think this rotation will continue.

So... since the first recovery has bottomed, here at the top it should move sideways.
While the cyclical stocks may break down first...
As we have seen, banks and real estate are threatening new highs, and materials continue to be strong... but Retail made a new high... and semiconductors are noticeably weak relative to the SPX

But as we try and push to new highs more and more sectors will not confirm the move...

Typically... Materials break down before Oil... and the stock breaks down before the commodity.