Ever watch a good boxing match and at the end both fighters embrace like long lost brothers? That is what today's session feels like. Even though we started the session at an all-time high for the S&P 500, trading has been such that over the last several months many longs and shorts have both lost money. The difference is, this is not the finale for the market where there remains a divide over how long inflation will last.
Bonds seem convinced high inflation will be short term and enough of the market is convinced that growth has begun a stealth rally. The broad stock market is still looking for answers, hence the early rally evaporates.
Only three sectors in the S&P 500 are higher - yep, the growth sectors.
S&P 500 Index
Communication Services XLC
Consumer Discretionary XLY
Consumer Staples XLP
Health Care XLV
Real Estate XLRE
I am especially impressed with brick-and-mortar retail names that are in most of the top 12 movers. I continue to like this niche of the market as the story got even more compelling after learning household net worth in the United States has climbed north of $137 trillion.
(I'm a little concerned about the high pace of borrowing.)
To see the chart, click here.
Have a great weekend.