Reacting to the unfortunate geopolitical events over the weekend in Afghanistan, US stock markets fell sharply at the open Monday morning, before recovering most of the losses by the close. US Treasury Bond prices leaped at the open before falling back by the close. Treasury yields, which move inversely to bond prices, fell sharply at the open before recovering. Gold rose.
Reflexively, Metals and Mining stocks fell as did Energy while the defensive sectors Health Care, Consumer Staples and Utilities rose.
Market breadth indicators show weakening particularly for the NASDAQ. Indicators for the S&P 500 and NYSE stocks are holding up better.
The S&P 500, and Europe indices remain strategically Bullish, NASDAQ, while Bullish, is beginning to underperform the S&P 500; China and Emerging Markets resumed declining.
Equity Styles: Large Cap Value continues gaining on Large Cap Growth: Small, mid cap and equal weight indices beginning to weaken vs. S&P 500.
Ranked Sectors: Leaders - Finance, Real Estate, Health Care, Materials Laggards - Consumer Staples, Communication Services, Consumer Discretionary, Energy
Yields of the 30-year US Treasury Bond, 10-year Note have bottomed and begun up-trends.
The Yield curve’s flattening has halted and appears to be strengthening; spread is 1.05
Australian Dollar downtrend may be ending; the Euro fell to its March 31 low and bounced up; the British Pound appears to be topping.
The US Dollar is Bullish and is strengthening after making a double bottom.