Markets took a notable breather, causing the S&P 500 to snap its four-week winning streak as did the Nasdaq Composite.
The exhale appears healthy given the near-term frothiness. For example, the S&P 500 and Nasdaq each posted 70%+ readings on their weekly distribution curves for the first time since November of 2021.
Furthermore, the S&P 500 Index Funds group ranked in the 95th percentile against 135+ other groups for the first time since January, suggesting a domineering technical profile.
Also on our group scores page, the consumer discretionary average score has not overtaken consumer staples; in fact, the divergence between the two has widened. Note this is not usual for a material market recovery.
Something to watch outside equities is the US Treasury 10 YR Yield Index as it rose to give a fourth consecutive buy signal and reenter a positive trend at 2.975% last week.