This continues to hurt the defensive sectors,
while money continues rotating from Treasuries to the largest caps.
Higher rates are also a negative for commodities linked sectors.
My concern was mainly about the Euro/US$ exchange rates, which have bounced in past weeks on expectations that the ECB will soon push rates higher - while the Fed is doing it now.
I had point to some small US$ buying activity yesterday, but this activity disappeared and the US$ seems to be weakening again.
The small caps continue to show a weak Money Flow pattern, which follows the Cumulative Ticks weakening trend.
On a side story, there was some small buying in FB yesterday. FB is basically the only of the NQ8 stocks that is buyable here on a pullback.
Conclusions:
Weak Treasuries continue to push money into the large caps. Not sure what would trigger a reversal of that move. Maybe a Treasuries auction failure, but the latest auctions were well oversubscribed.
Still wait and see here.
