George Tkaczuk talks about the sector rotation going on in the equity markets. Following last week’s decline, the major indexes have bounced and followed through after Friday’s reversal. Of note, the S&P held key support at 1,900, but is still below the 50 day moving average. Last quarter, the energy sector was the clear leader, but now investors are rotating to the large cap tech names. Internet stocks like FB, as well as Chinese stocks like BITA and QIHU, are showing relative strength. Travel and leisure companies are also strong, with PCLN up after a soft earnings report, and CTRP and EXPE at all-time highs. Tkaczuk mentions certain medical and biotech companies as other areas of the market that have held up well. He sees the rotation as healthy but says that it’s too early to say whether or not the market has bottomed.