10-year Treasury rates are the lowest they have been in six weeks at about 2.6%. Before the Fed non-tapering announcement last week, we recommend buying the utility sector via the ETF (XLU). Utilities are being re-priced higher on declining interest rates.
The internals of the equity market do not point to a general de-risking. Cyclical sectors continue to perform in line with defensive stocks post the FOMC announcement. Equities are drifting down to relieve a short-term overbought condition. With the Delta Market Sentiment Indicator (MSI) bullish, we will look to put new money to work as the pendulum swings more towards short-term oversold.