Please enable javascript in your browser to view this site!

Snapback rally lacks breadth, but action in Financials meaningful

CNBC today 3:30-3:40- pm live at NYSE-  So shortly after Europes close. US Markets  have rallied back.. But still really UNDER levels needed to think S&P is going to move straight up. But Financials look attractive to bounce further based on today's action.. Momentum still quite negative. and we'll need to see indices recapture area that was broken down-  for S&P CASH- SPX that is 2354-8 area.  SP futures 2351-4.  and then getting up over 2365-7 would be more proof-  Breadth only about 2.5/1 positive today not that great.  But Financials leading all sectors along with Energy, both up 1.29%   with Industrials and Materials also pressing up to near 1% on the day-  - Healthcare and Utilities both DOWN fractionally, but healthcare just largely giving up a bit given yesterday's strong outperformance.  Some evidence of US yields trying to stabilize and turn up and despite the 2s/10s crashing further South.  Financials are able to make good headway today after reaching former lows-  Overall, pays to be very selective here, as it does look like an important area.. and as said. trend is still one should still look more towards Europe for outperformance in the short run than US.. but bounce is constructive for now with Tech being resilient and Financials leading,  As of 12 noon-  DRI, RHT, CHK, CF, NE, GM, MUR showing the best performance, all up more than 3%.. while on downside- NEM, MCK, HCA, EW, UHS, STZ all down more than 1% as many hospitals giving back yesterday's gains-  Let me know if you have any questions-