Overall, the US equity market is still a very range-bound and choppy. Recent gains in US equities seem to have stalled out once again… just see the S&P 500 (INDEXSP:.INX) chart down below.
That said, Tech and Industrials have showed strength of late on stocks like Apple (AAPL), Micron (MU) and Broadcom (AVGO) – all turning in performances of more than +1%Â on yesterday.
To be fair, these gains are a bit misleading as the equal-weighted MSH dropped to multi-day lows yesterday. So Tech strength has been concentrated in fewer names.
Market leaders over the last week have been largely concentrated in Utilities and Telecom as yields have dropped. Not a real sign of confidence. But Financials have picked up some and rebounded back to highs.
This is a very choppy and rangebound market so it pays to know what the sector rotation is.
New developments this morning: European companies are beating expectations handily (similar to the US). Consumer spending continues to be a drag.  Companies like BMW, Unicredit, and Next all enjoyed better than expected Earnings beats. Even so, European stocks remain mixed as strength in the UK is being offset by weakness in Germany and Spain.
Elsewhere: Commodities are soft this morning as Gold and WTI Crude Oil decline. Bonds are moderately stronger and the US Dollar is higher.
Chart Spotlight: S&P 500 Futures
There is no end in sight to this choppy range just yet. The S&P 500 has been largely range-bound since July 19. BUT, it will have to break 2457 (downside) or 2480 (upside) before the next move.
Thanks for reading.
Twitter: Â @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.
