U.S. Stock Market Update: Financials & Tech In Focus

Investors are seeing minor gains across most world stock market indices this morning.  The S&P 500 Index (INDEXSP:.INX) is inching higher ahead of the FOMC today, which is largely expected to be a non-event.

The All-World index is mostly unchanged over the last 5 trading days.

While the Financials Sector (NYSEARCA:XLF) has begun to show real strength again as of yesterday given the yield surge, the Tech Sector and Nasdaq (INDEXNASDAQ:.IXIC) has largely stalled out. That said, is has not yet turned down. And the financials are showing some relative strength.

In my opinion, the performance during the final 3 days of the month of July hinges on how the Financials continue to make progress and whether Tech decides to participate in any rally.

Other noteworthy happenings…

The US Dollar meanwhile has hit support and is trying to turn higher.

As well, MIDCAP and SMALL CAP stock indices are pushing back to new all-time highs. While this is indeed a positive, it happens at a time when most cycles are starting to peak out and could produce a PEAK in stocks by mid-August. For now,  its right to let this range play out to see what direction we will take – most prices have been largely mixed for the last week.

S&P 500 – UNDER 2462 is needed before taking a negative stance, while over 2478 would indeed be a positive.

Semiconductor Index (SOX)

The SOX (INDEXNASDAQ:SOX) is making its best one-day move since early July, rising up to test 1117. Exceeding this level keeps Tech intact and trending higher to test early June highs.

Yield Curve

The Yield curve is slowly but surely steepening out yet again, with 10/30 moving up to nearly 59 bps,  2s/10s at 93.77

Crude Oil

SEPT Crude Oil Futures made a meaningful move yesterday. Back over $48 puts crude oil back on a positive track for a further move to 50 (though it should face very strong resistance there).

Thanks for reading.

Twitter:  @MarkNewtonCMT

Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.