Utilities remain perhaps the best and most consistent performer of any sector in the market today. Even as other defensive sectors outperform, consumer staples is stuck in a bit of a rut here. Energy stocks may be putting in a short-term top here as crude oil and natural gas prices continue to trend lower.

Even as short-term leadership began moving from cyclicals back to growth last week, utilities remains perhaps the steadiest outperformer in the U.S. equity markets. Energy was easily the market’s worst performer, which would be notable if the trend continues. Even as inflation rates decelerate and the evidence for recession grows, Treasuries still refuse to behave like a risk-off asset.

Utilities continue to provide one of the market’s stronger signals confirming the bearish sentiment hanging over the market. The fact that small-caps have yet to underperform large-caps this year is both encouraging and confusing. The massive migration of forex traders into the dollar suggests that conditions are ready to break globally.