Industrials have slowed down a bit over the past couple weeks, but that’s understandable given the recent breakout. The commodities market continues to stabilize, but I’m worried about the performance of lumber here. The latest decline in interest rates has already resulted in a short-term spike in mortgage activity, which in isolation should give the sector a bit of a boost.

Energy prices remain elevated and there’s optimism that China may slowly begin easing some of its COVID restrictions. Even though industrials underperformed during last week’s pivot to growth, the sector remains one of the market’s hottest. In a vacuum, last week’s decline in rates is a negative for the banks, but the overall environment looks improved.

With the October jobs report fueling hopes that a recession might be further off than we think, cyclicals outperformed in a major way. Healthcare is approaching its COVID peak relative to the broader market. Very quietly, consumer staples are developing a nice little uptrend here.