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The S&P 500 has been drifting for a few weeks in a 100-point range that has yet to be broken. Even today, S&P 500 futures (ES) finished down 0.90%... on light volume.

The market as a whole has held up, but interest-rate-sensitive parts of the market are starting to break. Utilities, for instance, were off 2.3% today on above average volume. NextEra Energy (NEE) was particularly hard hit - a leading loser in the S&P 100. By the time the bell rang and smoke cleared this afternoon, Energy was the only positive sector. Now, with Hurricane Milton steaming toward landfall, the dynamic is in play. We’ll look at this in-depth tonight.

Higher oil prices are a major contributor to weakness in the Utilities sector, and Consumer Staples also beat the S&P 500 to the downside at -0.99% In fact, the continued rise in oil prices puts the market at risk, and with geopolitical conflict spiraling and oil supply tightening, higher crude prices are all but certain. Crude futures (CL)
added another 3.95% today.

As we’ll see in a moment, the market will break out relatively soon; the 100-point range will end. We’ll see who the winners and losers are. There are directional opportunities right now, but keeping some dry powder handy will help limit risk - or help step into a bullish breakout.

Video Length: 00:21:30

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