Market Pulse · October 02, 2026 · Post-Market Edition

MACRO ENVIRONMENT

The macro environment registers a ‘RISK-ON’ stance, supported by a solid score of 30, indicating favorable conditions for risk assets. The Sahm Rule at -0.07 suggests no immediate recessionary signals, while the normal 10y-2y and 10y-3m yield curve spreads offer a stable backdrop. Despite elevated CPI at 3.7%, the Fed funds rate remains neutral, and a healthy unemployment rate of 4.1% bolsters confidence, even as the Fear & Greed Index signals ‘Greed’ at 74, and the DXY holds a neutral position.

MARKET PHASE

US equities, as measured by the S&P 500, are currently in a ‘SIDEWAYS’ trend phase, evidenced by an ADX of 9.4 and the index trading below its 20-day moving average, suggesting a lack of directional conviction. In contrast, Bitcoin is exhibiting a strong ‘BULL’ trend, boasting an ADX of 41.5 and trading comfortably above its 20-day moving average, signaling robust momentum. The VIX remains at a ‘Normal’ level of 16.39, with a slight uptick, implying contained but watchful near-term volatility.

SECTOR TRENDS

Sector rotation is pointing towards economic expansion, with Technology, Energy, and Industrials leading the charge, driven by strong momentum scores. Conversely, Utilities, Financials, and Materials are lagging significantly, exhibiting the weakest sentiment and performance in the past month. This divergence suggests investors are favoring growth-oriented sectors over defensive or cyclical plays that are currently out of favor.