Asset class level stocks are still beating bonds but the pace is slowing down. The big H&S pattern in EUR/USD which suggested strength for the USD is still there but lost a bit of its appetite.
Sector rotation looks to be getting a little bit more in line again. Julius looks at the current rotations on the daily RRGs and puts them into perspective on the weekly version, then he zooms in on the defensive sectors Utilities and Staples which are now back on track and both traveling towards the leading quadrant.
Technology is not able to get out of its sideways range on the RS-graph and is at danger of weakness ahead. Consumer Discretionary is now rotating back to lagging while inside the improving quadrant which is usually a reliable pointer for more weakness ahead. This guidance is supported by a rising wedge pattern that is currently forming in the price chart of XLY. Once executed this will very likely trigger an acceleration lower for the Discretionary sector.