Market Pulse · September 07, 2026 · Post-Market Edition

MACRO ENVIRONMENT

The macro environment is decidedly RISK-ON, buoyed by a ‘Safe’ Sahm Rule at -0.07 and a ‘Normal’ 10y-3m yield curve spread of 0.87, suggesting a healthy economic outlook. Despite elevated CPI at 3.5%, the Fed funds rate remains ‘Neutral’, and unemployment is ‘Healthy’ at 4.1%, reinforcing positive sentiment. The ‘Weak Dollar’ (DXY at 99.2) and a ‘Balanced’ Fear & Greed Index (73 · Greed) also point towards an environment conducive to risk asset appreciation.

MARKET PHASE

US equities, represented by the S&P 500, are firmly in a ‘BULL’ phase, trading above its 20-day moving average with a ‘Weak BULL’ trend strength (ADX 13.5), indicating ongoing upward momentum. Cryptocurrencies, led by Bitcoin, are exhibiting an even stronger ‘BULL’ phase with a ‘Strong BULL’ trend strength (ADX 47.4), significantly outperforming US equities and trading well above its 20-day MA. The VIX remains ‘Low’ at 14.53, signaling subdued expectations for near-term volatility despite the bullish trends.

SECTOR TRENDS

Sector rotation is currently in a ‘Recovery’ phase, with Energy, Communication Services, and Healthcare leading the charge, driven by strong momentum and improving risk appetite. Conversely, Real Estate, Consumer Discretionary, and Industrials are lagging, indicating a potential shift away from interest-rate sensitive and consumer-dependent sectors. Investors are favoring cyclical areas as the market embraces a risk-on stance, a trend that is likely to continue as long as macroeconomic indicators remain supportive.