In studying the charts this weekend, I noticed what appears to be an unusual alignment between the typical "risk-on" & "risk-off" asset classes. While the case for the next major leg down in US stocks that I have been making recently was considerably strengthened on Friday, I find it a bit unusual to see what appears to be a pretty solid technical case for a reversal (drop) in the traditional flight-to-safety assets & sectors such as U.S. Treasury bonds, utility stocks & consumer staples at the same time. Traditionally, those 'risk-off' securities have been the beneficiaries of market volatility as money moves out of risky assets such as growth stocks & into these perceived safe-havens or, in the case of consumer staples & utility stocks, companies whose earnings are typically not impacted by a slowdown or contraction in the economy.
Market Overview 6-26-16 (video)
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