Equities & Treasury yields remain near key levels ahead of Economic data

US Equity indices and Treasury yields lie near key resistance which will make this week’s economic data increasingly important for evidence to support follow-through and/or reversal.  Equities have been consistently trending higher of late on “bad” news which causes yields to retreat, while pushing higher on better than expected economic news.

S&P’s rally from 8/18 lows remains intact, but is also part of an ongoing downtrend from 7/27 peaks.  This churning has created a difficult technical roadmap, as daily and weekly momentum remain negatively sloped, while monthly momentum is still positive. (All based on MACD)

This choppiness in US Equities over the last six weeks has seen seven sectors underperform the Equal-weighted S&P 500:   Staples, Healthcare, Discretionary, Communication Services, Financials, Industrials, and Materials.

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