Market Pulse · October 10, 2026 · Post-Market Edition

MACRO ENVIRONMENT

The macro environment exhibits a RISK-ON stance, underscored by a score of 25, with key indicators aligning. The Sahm Rule remains at 0.0, signaling no recessionary threat, while both the 10y-2y and 10y-3m yield curves show normal positive spreads (0.44 and 0.99 respectively), suggesting healthy economic expectations. Despite elevated CPI at 3.7%, the Fed Funds Rate holds a neutral 3.75%, and the Fear & Greed Index sits at 59 (Greed), indicating market participants are optimistic, though not overly frothy. The DXY is also neutral at 102.2, and with no unemployment data available, the overall picture supports risk appetite.

MARKET PHASE

US equities, represented by the S&P 500, are firmly in a BULL phase, currently trading above its 20-day moving average at 7811.54 versus 7704.77, though its ADX of 9.5 suggests a weak trend strength. Cryptocurrencies, however, are in a SIDEWAYS phase for Bitcoin, trading below its 20-day moving average (82454.64 vs 84280.17) with a strong ADX of 37.7 indicating significant choppiness. The VIX remains low at 14.84, down 3.7%, suggesting subdued near-term volatility expectations for the broader market.

SECTOR TRENDS

Sector rotation is currently favoring defensive plays, with Staples, Utilities, and Healthcare showing relative strength, though the top performing sectors are Technology (82.1 score, 6.04% 1m return) and Healthcare (77.4 score, 3.69% 1m return), alongside Energy (71.0 score, 0.5% 1m return). Conversely, Real Estate (-36.7 score), Materials (-45.1 score), and Communication (-63.3 score) are the weakest performers, indicating a divergence between growth-oriented and cyclical sectors. This suggests investors are seeking higher growth potential in tech and energy while reducing exposure to interest-rate sensitive and commodity-linked areas.