The path of least resistance is clearly higher in the near-term. The Nasdaq added 1.39% leading the major US Indices higher while the S&P 500 gained 0.97% and the Dow added 0.58% on the day. At the Sector level XLK, XLC and XLY were in the leadership cohort as they have been for most of the past 2+ weeks while value cyclicals and lower volatility stocks lagged as the bull reasserts itself. Small Cap. shares were also higher with the Russell 2000 adding 1.19%.
Commodities prices were as measured by the Bloomberg Commodities Index were off 0.27% while Crude was lower as well. Rates as reflected by the 2yr and 10yr treasury yield were softer, while gold had a strong day. USD weakened against major crosses.
The rally so far has defined the early August decline as a downside head-fake in the ongoing long-term bull trend. A break-out to new all-time highs will confirm, but we have now seen our short-covering signals triggered and we have covered our XLK tactical short and will likely be doing the same with XLY if it moves above the key 188 level that is our bullish reversal signal.
Eco Data Releases | Tuesday August 20th, 2024
| Date Time | Event | Survey | Actual | Prior | Revised | |
| 08/20/2024 08:30 | Philadelphia Fed Non-Manufacturing Activity | Aug | — | — | -19.1 | — |
S&P 500 Constituent Earnings Announcements by GICS Sector | Tuesday August 20th, 2024
LOW, KEYS, JKHY
Data sourced from Bloomberg, CNN.com
