Discussion
Despite VIX, VVIX, and HY CDX green on the day (albeit VVIX up less than VIX, which is typically relatively bullish), breadth beneath the surface is actually pretty decent with RSP solidly green versus red SPY and advancers/decliners better than 2:1. Interestingly, throughout the day XLU, XLP and XLV have rallied, and XLU is now outperforming both RSP, SPY and KBWB.
Of note, NDX and SOX are running right into multi-year relative strength resistance. No conclusions yet, but these areas will likely be key to monitor going forward for clues about the economy and rates.
Exhibits
Breadth better than 2:1 today on NYSE.
NDX and SOX running into stiff relative strength resistance.