Range Bound With A Bias Lower

Bonds and the Fed are looking in opposite directions as equities work through a challenging trend environment.

Hi Mount Research clients received a market update and portfolio perspectives video earlier this afternoon. This is what got covered:

Two key takeaways:

1. The NASDAQ has led the way this year but breadth is deteriorating. Index level strength is difficult to sustain with new lows > new highs.

   

2. Sentiment surveys (whether of individual or institutions) showing pessimism are one thing, but data from the Fed paints another picture: household equity exposure remains well above average and there is not a surplus of cash on the sidelines.