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“When everything seems to be going against you, remember that the airplane takes off against the wind, not with it.” – Henry Ford

After causing some confusion and concern regarding interest rates yesterday, Treasury Secretary Janet Yellen sought to clarify her comments after the close yesterday, and futures are attempting to rally following yesterday’s weakness in response.  Leading the way higher in the pre-market, the Nasdaq is looking to regain some of its steep losses.  While Treasury yields were down yesterday in reaction to commentary suggesting rates would need to rise, the 10-year yield is back above 1.6% this morning after Yellen said she was neither predicting nor suggesting a need for rate hikes.

The only economic data release so far today has been ADP Private Payrolls which missed expectations by just over 100K (742K vs 875K).

Read today’s Morning Lineup for a recap of all the major market news and events including the biggest overnight events, some key earnings reports, economic data from around the world including Services sector data from Markit, as well as the latest US and international COVID trends including our vaccination trackers (which continue to show a significant deceleration in vaccine uptake), and much more.

After the mega-cap tech stocks couldn’t rally on great earnings last week, US equities have been struggling over the last week as the S&P 500 is down fractionally while the Nasdaq 100 has dropped close to 2.5%.  Stocks haven’t just been weak in the US, though.  The snapshot of regional international ETFs from our Trend Analyzer shows that the only ETF in the category that is up over the last week is the International Dividend Achievers (PID).  Besides that, every other ETF is up over 1%.  Leading the way to the downside, it has been Asia and Emerging Markets which have declined over 2%.

As a result of the recent weakness, we’ve certainly seen some cooling off in the boil we had been seeing.  While the vast majority of ETFs in the category were overbought at this time last week, every one of them with the exception of PID is now in neutral territory.