Market Overview

The equity markets have experienced a correction in August, with the Russell and S&P 500 equal weight underperforming the S&P and NASDAQ. The breadth of the market has deteriorated, with a significant decline in the percentage of stocks above their 50-day moving averages. The rotation of sector performance has also been observed, with defensive sectors like utilities and healthcare experiencing weakness. The bond market has seen a sell-off in the long bonds, while junk bonds have remained resilient. The 10-year note is testing major support, and it will be interesting to see if it base and turns higher. Overall, the market is in a volatile phase, and further sector rotation and market movement is expected.