Mid-Week Market Update: Market Breadth Improves as Rates and Oil Remain Risks

The S&P 500 has had a strong rebound since my last update and is now consolidating near its highs. So far, I’m not seeing much that makes me think the recent breakout is failing, but there are several levels and indicators I’m watching closely.

In this mid-week market update, I go through what I’m seeing beneath the surface of the market, including:

• The support levels I’m watching in the S&P 500
• Whether the Nasdaq may be setting up for another move higher
• Rotation out of defensive stocks
• Continued weakness in semiconductors, South Korea, and the AI/momentum trade
• Why the VIX is currently confirming the move higher in stocks
• New highs in the S&P 500 advance-decline line, equal-weight stocks, and value stocks
• Why rising oil prices and Treasury yields remain two of the bigger risks to the market
• The potential impact of developments involving the Japanese yen and the Treasury market

For now, breadth continues to improve, volatility remains relatively subdued, and money appears to be rotating within the market rather than leaving it altogether.

As always, that can change quickly. I reserve the right to change my mind as the prevailing trends change.

The indexes, ETFs, and securities discussed in this video are for illustrative and educational purposes only and do not constitute a recommendation to buy or sell any security. Please refer to the disclosures at the beginning and end of the video.

Matt Williams, CFP®
JTM Williams Capital Management
matt@jtmwilliams.com
703-782-3110
jtmwilliams.com