Heavy premarket selling turned into ES almost testing 5,470, which was readily bought, but after 30min of buying, S&P 500 couldn‘t just reach any higher – only Nasdaq did, and still it couldn‘t flip QQQ:SPY or its own breadth metrics into bullish territory.
And why should it? Semis and memory are in trouble, technically and in terms of reaction to earnings / guidance good or disappointing. Software is sideways at best, and the sentiment overall is leaning towards no rate hikes soon (Jun inflation data were good, but discretionaries still can‘t rally). Sectoral performance is clearly defensives-well-bid, and Friday‘s brief moment of tech outperformance was a rare moment of when these (XLP, XLU and of course XLV) came down.
There would be simply bounces like that in the equities correction that‘s unfolding, and markets haven‘t reacted yet duly to Mideast (major) escalation ahead talked with clients Friday („hot, very hot weekend ahead“).
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