Driving along a state road on Sunday morning, we had to brake for cowboys and their border collies that were herding their cattle towards home. As a NYC girl who has only seen that happen in the movies, I find it thrilling. In the market, we put on the brakes today. With earnings season revving up this week, until the cows come home, observing rather than jumping in with the herd makes sense.

The Russell 2000 had no irreparable damage done. Yet even a low volume sell-off can be construed as either normal profit taking ahead of earnings or the start of something more profound. Of course, nothing seems to stop Sister Semiconductors. Although, with SMH close to 100, I figure a psychological barrier exists at that level. At least for now.

Over the weekend, we explored the fire rooster and his need for attention at all costs. However, if the fire rooster becomes upstaged by cumbersome cattle and their agile, protective dogs, where does that leave our lavish yet puny-by-comparison mascot?

We also explored Granny Retail, today aka Resuscitation Granny. Confirming the Recovery Phase, XRT could reignite the Rooster. Stocks such as Costco (COST) and Lululemon (LULU) could be compelling stocks in Granny’s basket as LULU reports in over a month and Costco not until January 2018. Then, our Prodigal Son, Regional Banks (KRE), must hold up. KRE came closer to testing key support at 56.50. Besides earnings, this ETF waits for the announcement on who will be the new Federal Reserve Chairman. While KRE waits and XRT firms, Big Brother Biotechnology (IBB), struggles to stay in the game. So here we are with yet another time our Modern Family diverges. Semiconductors new highs, Retail on oxygen, Regional Banks on hold and Biotech at risk of failing the monthly channel after trading above it. And our herd? Complacently lumbering along for now.

S&P 500 (SPY) Was Friday the blow-off? 255.50 support for now and what could be a low-volume correction or worse.

Russell 2000 (IWM) We saw what Gramps was made of over 150-not much. 148 some support.

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