IN the first couple hours of trading we've seen a carryover of European weaknessin Energy over to US, but minimal damage in Crude and if anything, given the positive structure, pullbacks should prove to be buyable in Energy.
S&P has just undercut lows from last Friday and early morning today near Europe's open and as of now, Consumer Staples is the only positive sector with breadth at slightly less than 3/1 negative- Gold remains bullish while the USD falls vs both Pound Sterling (Brexit fears overdone) while giving back some vs Yen which had pulled back hard on Friday vs USD
Today's ability to remain UNDER 2074 in S&P does suggest a bit more weakness in the days ahead, yet given the ramp up in BOND YIELDS. Bunds, TY yields. selloffs should prove minimal and buyable
Minor negative to have S&P under last Frid lows and could produce minor weakness down to 2048-50 unless immediately recouped, but that should prove to be the extent of US Equity weakness for now
Daily sell signals being confirmed on NY COMP.. but trendline still very much intact for NYA. For now, just minor weakness
Big rise this am in Bund yields, surging up above 27 bps which also led US Treasuries lower as yields moved up to challenge and surpass last Fri highs
Bund yields turning back higher should lead TY yields and likely keep Equity selloff to a minimum as Stocks follow yields. and financials outperform- 31-33 bps key for Bund yield. above leads to 47-48