The market is again doing a lot of nothing based on the major market indices such as the S&P 500 (SPX), but under the surface there seems to be a continued defensive tone. The “stay-at-home” sectors are outperforming, Growth is outperforming Value, Gold is strong, and 10-year U.S. Treasury Yield is slightly lower. All in all not a major hit, but just indicative of action that doesn’t compel the need at add risk more aggressively.
We continue to believe the better place to add risk during the expected consolidation period is when the SPX gets closer to the breakout point from the trading range, which means around SPX 3000 or when the intermediate-term overbought condition – as seen in the weekly stochastic in our tactical indicator update post today – is neutralized.
Past performance is not a guarantee of future results. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. All data points are sourced from Bloomberg as of 6/22/20 unless noted otherwise.
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