Financial Sense – Rotation, SPY/QQQ Targets, Gold Stalls and BTC/QQQ Correlation

These are the charts from my interview with Cris Sheridan and Financial Sense on Friday, August 22nd. A correction and market rotation started in August as money moved out of tech groups and into defensive groups. QQQ and Nasdaq 100 are the dominant force in the market right now. As such, a correction in QQQ would weigh on SPY, and could affect Bitcoin because of the positive correlation. Even before this week’s decline, breadth was mediocre and narrow leadership. Small-caps held up well in August, but IWM remains a long-term laggard. And finally, gold is winding up with a bullish continuation pattern taking shape.