When a rising tide doesn't lift all boats it makes me wonder if there's a problem with the boat.

Equities are enjoying a bounce led by some of the beaten-down parts of the market of late namely the Dow industrials, transports, small caps, energy, banks, and materials. Tech is showing relative weakness, as bonds run into resistance.

This is the standard "re-rotation," musical chairs-type of move we have grown accustomed to, although one I am increasingly skeptical of in terms of sustainability. Still, on a smoky summer Friday it may not be the exact moment for bears to try for a major intraday reversal. Indeed, looking out to next week could easily be the bigger battleground, as we find out whether the recent bounce in bonds was nothing more than a bear market rally, guiding a new regime of higher rates for the foreseeable future.