Equities The US Markets gapped down at the open Monday morning and fell further through the day. All US markets turned Bear Alert today. Deterioration began on Friday.
As we wrote last week, given their sizeable gains since June lows, US markets may see a pullback as prices consolidate before the next potential up move. While we are still in a Bullish Trend, the markets are looking for support at their 200-day moving averages.
All US Sectors fell with Communication Services, Information Technology, Consumer Discretionary, and Financials all down over 2%. China eked out a small gain.
Fixed Income The 10-year US Treasury Yield closed at 3.037%, up smartly from last week's 2.765%. The short-term trend is up. The 2-year US Treasury closed at 3.32% up slightly from last week's 3.20%. The 2-year yield appears to be forming a Top.
The 10-2 year Yield curve remains inverted, however, its negative spread narrowed to -0.29 from last week's -0.41.
Currencies Currencies vs. US Dollar: The Euro, in a Bearish trend, closed at 0.99, and appears attempting to find a bottom; the bullish US Dollar rose to 108.98 up from last week's 106.43.