In yesterday’s update, I drew two short-term lines in the sand, looking for the major indices to close below Monday’s low or above last week’s high to signify the next move. Yesterday, we saw the Dow and S&P 500 stay above Monday’s low, but the S&P 400 and Russell 2000 closed below Monday’s low. That leaves us leaning in the bearish direction awaiting full confirmation.
Leadership from biotech, REITs and utilities has started to wane, but the financials are trying to step up here as the market rotates. High yield bonds are underperforming in the short-term and that’s a bit worrisome if it continues.
