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Financials breakout worth following near-term; Rising complacency, but appears early to fight Trend in Global equities

Minor gains in US Equity futures premkt while both Europe and Asia extend gains- Bond selloff continuing throughout much of the developed world outside of UK where Gilt yields dropped down to .645-   US Dollar fractionally higher again while commodities lifting on Energy gains and Gold showing mild losses-  A few key things to note heading into this week:  Financials outperformance is meaningful given recent yield rise and breakouts in XLF and S&P Financial index likely helps equities gains continue for now, despite rising bullishness, low Implied volatility and Put/call ratio levels-   Bloomberg World index and MSCI AC WORLD index are at new yearly highs and a constructive move overall for global equities that will need to show evidence of reversing before fading this move-   Areas of importance this am for S&P futures- 2183-5, and then 2190- and on downside- 2171 PIVOT and then 2163-5, 2152-   Premkt gainers:  MFRM, HZNP, TNXP, ALR, MTN, while on downside: SM, DAL, DGLY-  Let me know if you have questions-   This morning's Weekly Technical Perspective sheds some light on the Financial space again given last week's breakout and studies some of the absolute and relative charts within the various subsectors-

 

Despite the issues of increasing complacency, low volume rallies, intermarket divergence,  low VIX, low Put/call ratios.  this move back to new highs in World indices still seems early to fade here, and have to still stick with trend until signs arise that this is wrong

Financials breakout on Yield pop looks meaningful and looks right to overweight this sector near-term on this rally which has not only exceeded early Spring highs but also entire downtrend from 2015-  Absolute gains have coincided with a bit of relative strength on relative charts vs SPX, which was highlighted in this week's Weekly Technical Perspective

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