What Happened
- Equities consolidated Monday’s advance with lower intraday volatility.
- Corporate spreads were little changed, signaling stable risk appetite.
- The dollar drifted lower while gold and oil both edged higher.
What It Means
- Price action suggests investors are not yet pricing a new macro shock.
- Tight credit supports the idea that financing conditions remain manageable.
- Dollar softness is reducing pressure on cross-asset risk positions.
What I Think
- The tape still favors patient longs, but conviction remains moderate.
- I am watching whether leadership broadens beyond mega-cap defensives.
- A sudden rates jump would be the clearest threat to this setup.
Market Terms
- Credit spread - The yield difference between corporate debt and Treasuries.
- Leadership breadth - How many groups are participating in an up move.
- Cross-asset - Analysis across multiple markets such as stocks, bonds, FX, and commodities.