The utilities sector continues to curiously lead this market higher, a bit of an anomaly considering that tech and small-caps are also outperforming. Treasury yields have finally started moving higher and staying there, while I'm closely watching the lumber/gold ratio since lumber price changes tend to lead stock price movements.

Utilities leadership has been very firm here running a bit contradictory to what we’re seeing from other areas of the market. Utilities and Treasuries are diverging a bit here, most likely from confusion over when/if we’ll see new stimulus.

The utilities sector was one of the few to outperform the S&P 500 last week, reinforcing the notion that defensiveness is taking over the equity markets right now. Treasuries have remained firm throughout this 6-month recovery and are giving a strong signal here that investors are still positioning for further weakness.