Correction in S&P 500 leaders

Buying the S&P 500 dip right away wouldn‘t have worked as all the XLC, XLY and sure XLK too pessimism hasn‘t played out by then, but by the late session and following 4,560 support test, stocks got interesting as the beaten down sectors are to catch a little bid today. It‘s that TLT didn‘t resolutely decline without generating buying interest, and yields are likely to retreat somewhat today – and that would make for tech to pick up alongside real assets with USD pausing. It appears markets would look for an excuse (shaking off strong initial unemployment claims and weak Philly Fed manufacturing) to return to the narrative that Jul rate hike is the last one...

Let‘s move right into the charts – today‘s full scale article contains 5 of them.

S&P 500 and Nasdaq outlook

4,560s were in the end briefly visited today – and odds are we return to 4,590s as XLF, XLI, XLE, XLB won‘t materially retreat while the beaten trio (XLK, XLC, XLY) improves. Low 4,560s visit would be a bad omen, but I‘m not looking for selling at the open to take ES there.