Early Update- Small Caps and Industrials Weak

S&P and Dow (-0.1%) are testing yesterday’s afternoon low. NASDAQ +0.15%. Small Caps (-0.5%) show relative weakness, testing down to the bottom of the July consolidation range.

IWM (15m) the support area is $154.25.

Five of 11 S&P sectors are higher. Yesterday leader is this morning’s laggard. Industrials are down -0.9%.Transports down -2.5% following disappointing results and guidance from CSX Corporation (CSX -8.9%).

S&P sectors have a defensive bias with Utilities, Real Estate and defensive oriented Health care showing early relative strength. Technology isn’t doing bad (+0.35%).

NYSE breadth is a little more negative, but still well below normal intraday ranges at -450.

Treasuries have moved higher since the open, pushing yields lower in a similarly defensive move.

Both gold and silver are moving higher, SLV up 2% at $14.84. The measured move target discussed yesterday is around $15.

For now volatility’s relative weakness (VIX -1.1%) should lend a measure of support to the broader market. There are still quite a few sectors at what could be critical crossroads, much like Small Caps this morning.