Market Pulse · July 24, 2026 · Post-Market Edition

MACRO ENVIRONMENT

The macro environment is currently signaling a ‘RISK-ON’ stance, with a score of 30, suggesting a favorable backdrop for growth-oriented assets. The Sahm Rule remains comfortably in safe territory, indicating no immediate recessionary concerns, while both the 10-year to 2-year and 10-year to 3-month yield curves are normally sloped, supporting economic expansion. Despite elevated CPI readings of 3.7%, the unemployment rate is healthy at 4.2%, and the Fear & Greed Index sits in a balanced ‘Fear’ zone at 31, hinting at a market that is not overly complacent. The DXY is neutral, providing no significant headwinds or tailwinds to global capital flows.

MARKET PHASE

The US equity market, represented by the S&P 500, is exhibiting a weak BEAR trend, currently trading below its 20-day moving average with a low ADX of 13.3, suggesting a lack of strong directional conviction and potential for sideways movement or further downside. In contrast, Bitcoin is demonstrating a weak BULL trend, trading above its 20-day moving average with an ADX of 18.2, indicating a modest but present upward momentum in the cryptocurrency space. The VIX, while up 12.4% to 18.7, remains in the normal classification, suggesting that near-term volatility is elevated but not yet indicative of panic.

SECTOR TRENDS

Sector rotation is currently in a ‘Recovery’ phase, with Energy, Utilities, and Real Estate demonstrating leading performance, driven by their strong scores and positive one-month returns. This suggests a market prioritizing value and defensive plays amidst broader economic uncertainty. Conversely, Technology, Communication Services, and Consumer Discretionary sectors are the laggards, with significantly negative scores and returns, indicating investor caution and a move away from growth-oriented, riskier segments of the market. This divergence highlights a bifurcated market environment where specific sector themes are driving performance rather than a broad, risk-on appetite across the board.