SPY closed at $750.33, holding near its 90-day high, while the 10-year Treasury yield sits at 4.49% — unchanged from yesterday. Gold is flat at $397.10; the 90-day range suggests a lack of conviction in safe havens, supporting the risk-on tone. Today's FOMC decision is the catalyst, but the market has largely priced in a hold, so the focus will be on the dot plot and Powell's commentary.
Health Care (XLV) continues to lead, up 1.5% over the last 5 days, driven by LLY's momentum and a flight to quality. Conversely, Industrials (XLI) remain under pressure, down 2.8% over the same period, and showing no signs of a near-term reversal. This divergence highlights a preference for defensive exposure heading into the Fed announcement.
Watching AMD (earnings expectations – chip cycle watch), FTNT (broke $149 – momentum play), and ROKU (new highs – growth momentum). Also, LLY (strong trend – healthcare leader).
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