Just dropping a quick note on today’s breadth, which is weak–the overall equity complex is seeing only about 62% of the stock universe higher on the day according to Exodus.
However, the right sectors are on the move. Tech leads the way which is evident when you compare the NASDAQ to the S&P 500. On Tuesday the tech-heavy NASDAQ managed to reclaim last Friday’s range while the S&P still trades well below its respective Friday range.
Utilities are lower, which bodes well for bulls after the sector lead the charge last week, which can be a sign of investors becoming more risk averse.
Finally, Basic Materials are taking a beating, lead by oil. Neither Gold nor Silver is helping the sector–both metals are lower on the session. Overall, the metals appear range bound, and by their performance may buoy the Materials group if we see bidders defending the low-end of range.
Or it could snap the range and careen lower. Never completely dismiss the possibility of an established range breaking. Risk management 101.
Everything stated above can be derived from a quick glance at the below chart, which is one of my favorite visual tools inside Exodus:
Breadth is low, but it is showing up in the right places. Hot, story stocks are running while everything else sort of meanders. With pace slowing, the ball is back in the confident hands of the bull camp.
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