Market Bottoming Action…

The overall bottoming action appears to be falling in place.

At times like this I like to look for signs of when the relationship between what everybody thinks they should own versus what everyone is afraid to own. While there are a many of these relationships that could be monitored in this moment, one that I am watching is (CAT + DE + VRT + JCI) vs (KKR + BX + ORCL + PLTR).

See chart here. You will note that just after the first of the year this relationship went wild, RSI topped on Feb 5, then the overkill stage into Feb 23, and now the period when things will start to move more in tandem, or maybe even retract to a more stable relationship.