Comments
The US Dollar continued strengthening after breaking out of a base last week. Negative effect on Euro and Emerging Markets.
Equities
The S&P 600,400, 500 indices remain in strategic Bullish trends. US small and mid-caps continue leading, Nasdaq and China on Bear alert.
- Equity Styles: Large Cap Value dominating Large Cap Growth. Small and Mid-cap stocks (particularly Value) continue outperforming Large Caps.
- Ranked Sectors: Leaders - Energy, Transportation Industry, Financials, Industrials. Laggards - Tech, Health Care, Consumer Staples, Utilities.
Interest Rates
The 30-year US Treasury Bond Yield rose to 2.399% and backed off; the 10-year Note Yield rose to 1.646% and backed off. The 2-year – 10-year Yield curve rose to 1.48.
Currencies
The Australian Dollar and British Pound were choppy in Bullish trends. The Yen continues plunging; the Euro appears to be topping and is on Bear Alert. The US Dollar rose 91.85 after breaking to upside from a base-building (since December) pattern.
Gold is Bearish at oversold level 2 and made a small bounce up.
Short term Market indicators show low risk of significant pullback; and overbought positions may drift sideways to lower. Systemic risk is not indicated.
