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Only minor weakness in stocks, which pales to the degree of Bond mkt weakness

Just minor signs of S&P weakening but not really much technical damage at all, as the pullback hasn’t even gotten down to below yesterday’s lows, which will be a minimum to call for any sort of real pullback.   The bond selloff is much more important today than what’s going on in Equities as 10-yr yields have moved up to nearly 1.60, while Bund yields finished positive, both very big moves in just a short period of time.  And the US Dollar index has advanced to new multi-day highs and set to close at the highest levels since mid-March, so this likely could be an upcoming source of weakness for commodities priced in USD, .  For now, Gold is just down fractionally. 

NO real weakness yet for S&P, and markets will at least have to violate 2-3 days lows on a close to argue for pullbacks, which should be likely next week

Yesterday's reversal in Financials looked important, and even with a few positive earnings beats, stocks like WFC and many of the REITS are weakening substantially

Sector-wise, Financials are actually the worst performing sector today despite this continuing surge in Rates, as Wells Fargo WFC is leading all other Financials in the S&P 500 Financials lower along with many REITS also participating on the downside as Yields spike.  Utilities actually remain positive in today’s session, but have lagged substantially this week, as might be expected, and the only S&P sector down on the week, lower by 1.33% while Materials industrials and financials all outperformed.  

 

FOR EQUITY DIRECTION>   I’m looking at Wed lows of 2138 as being important if breached,  and would serve as the catalyst for a pullback to down near 2100 into late next week at a minimum, but I think a pullback should be getting underway next week in a minor fashion to relieve some of this overbought state given that XLI, XLY, XLK, XLF, XLB, XLE all lie near former highs and/or key levels

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