Market Pulse · September 06, 2026 · Post-Market Edition

MACRO ENVIRONMENT

The macro environment exhibits a ‘RISK-ON’ stance, underpinned by a solid score of 40 and a favorable Sahm Rule indicator. While CPI remains elevated at 3.5%, the ‘Normal’ yield curve spreads and a steady Fed funds rate suggest underlying stability. Coupled with a ‘Healthy’ unemployment rate and a weakening DXY, these factors create a generally supportive backdrop for risk assets. The ‘Greed’ sentiment in the Fear & Greed Index, while high, is currently classified as ‘Balanced’, indicating that optimism is not yet at unsustainable extremes.

MARKET PHASE

US equities, as measured by the S&P 500, are in a ‘BULL’ phase with a ‘Weak BULL’ trend strength, evidenced by an ADX of 13.5. The index trading above its 20-day moving average (7718.6 vs 7708.7) reinforces this upward momentum. Bitcoin is also in a strong ‘BULL’ phase, demonstrating a ‘Strong BULL’ trend strength with a high ADX of 46.5 and comfortably trading above its 20-day moving average. The VIX remains at a ‘Low’ level of 14.53 with a slight increase, suggesting that near-term volatility is expected to remain subdued despite the bullish trends.

SECTOR TRENDS

Sector rotation is currently in a ‘Recovery’ phase, with Energy, Communication Services, and Healthcare emerging as the leading sectors. Energy, in particular, stands out with a strong score of 90 and the highest 1-month return, suggesting robust performance. Conversely, Industrials, Consumer Discretionary, and Real Estate are the laggards, exhibiting significant negative scores and recent underperformance, indicating a rotation away from these economically sensitive areas. This divergence implies that positioning should favor cyclical and defensive sectors that are currently outperforming.