After a choppy four-month stretch of underperformance, tech has firmly come back to lead the latest leg of the bull market. Long-term Treasuries continue to show resilience and could be providing one of the strongest signs that defensive positioning is building in the shadows. I think there’s a genuine possibility that we’re seeing the bottom in the current lumber market correction.

Interest rates again drove the narrative for bank stocks as higher rates translate into higher margins. The commodities correction is clearly having a significant effect here although short-term underperformance is probably a bit overdone. The infrastructure deal announcement had a modestly positive effect on this group, but I don’t think there’s much upside left in infrastructure stocks.

Defensive sectors have been a bit of a mixed bag lately, but REITs continue to look strong. Tech continues its comeback and may be breaking out of the downtrend that it’s been in since the start of the year. There was a general concern that flat month-over-month sales and higher inflation could stifle discretionary spending, but both fears look like they could be soothing in the short-term.