Market Pulse · August 11, 2026 · Post-Market Edition

MACRO ENVIRONMENT

The overall macro environment signals a ‘RISK-ON’ stance, supported by a score of 35, driven by a ‘Safe’ Sahm Rule indicator and ‘Normal’ yield curve spreads (both 10y-2y and 10y-3m). While CPI remains ‘Elevated’ at 3.7% YoY and the Fed Funds Rate is ‘Neutral’ at 3.63%, the ‘Weak Dollar’ from a DXY of 99.8 and a ‘Balanced’ Fear & Greed Index (30, indicating Fear) suggest that risk assets are finding some traction. The absence of current unemployment data leaves a gap in assessing the labor market’s impact on risk appetite.

MARKET PHASE

US equities, represented by the S&P 500, are exhibiting a ‘Weak BULL’ trend with a moderate ADX of 20.6, currently trading above its 20-day moving average, indicating positive momentum. Bitcoin, however, is showing a ‘Weak BULL’ trend with a lower ADX of 10.7 and is trading slightly below its 20-day moving average, suggesting a more consolidated or choppy ascent. The VIX sits at a ‘Normal’ level of 15.46, with a modest 3.8% increase, implying that while short-term volatility is not excessively high, there’s a slight uptick in caution, reflecting a mixed risk sentiment.

SECTOR TRENDS

Sector rotation is currently favoring an ‘Economic expansion’ theme, with Materials, Healthcare, and Consumer Discretionary leading the pack and exhibiting strong momentum as indicated by their high scores and positive 1-month returns. Technology and Industrials are also performing well, aligning with growth-oriented narratives, while Communication shows modest gains. Conversely, defensive sectors like Consumer Staples, Real Estate, and particularly Utilities are lagging significantly, exhibiting negative sentiment and underperformance, which suggests investors are rotating away from traditionally safe-haven assets in favor of cyclical and growth-oriented areas of the market.