Intermarket Rotation Update
This week’s intermarket landscape reflects improving conditions across equities, alongside continued strength in commodities. However, key divergences remain across other asset classes.
Equity Participation Improves
Major equity indices moved higher, with participation expanding beyond just technology. Financials, industrials, and consumer discretionary sectors all posted gains, suggesting broader engagement.
Commodities Maintain Leadership
Energy and commodities remain among the strongest areas of the market. Oil, in particular, continues to show consistent upward movement, supporting the broader commodity complex.
Bonds Continue to Lag
Long-duration bonds declined during the week, indicating that rates are not moving in alignment with equity strength. This remains an important divergence.
Metals Show Continued Weakness
Gold and silver both declined, continuing a pattern of underperformance relative to other commodities.
Intermarket Perspective
While equities and commodities are showing improved alignment, the lack of confirmation from bonds and metals suggests that intermarket relationships remain incomplete.
Disclaimer:
This content is for educational purposes only and does not constitute investment advice.