Market internals worsening despite indices holding up

US Equity indices and Treasury yields remain quite choppy, but the path of least resistance remains lower over the final couple weeks of September.  Treasury yields look likely to break out to new 2023 highs, and I suspect this will be short-term negative for Equities.  Only on a TNX break under 4.05% would it arguably be right to trust an Equity bounce in Sept.

S&P’s range-bound pattern remains intact, but it’s important to relay that momentum and breadth have gotten worse in recent weeks.

Furthermore, despite Technology’s strength over the rolling 1-month period (Tech is the 2nd best performing sector behind Energy over the last month) other sectors like Healthcare and Industrials have not been acting well.  Furthermore, Financials have seen pronounced weakness within the Regional bank space, and look to be at key resistance in relative terms to SPX.

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