"Fundstrat Warns: Tech's Market Camouflage Unsustainable"

Despite the S&P 500's recent resilience and positive futures action, technical analyst Mark Newton warns that the market's recent bounce has been largely driven by the tech sector, masking broader sectoral weakness. With less than 30% of S&P 500 stocks currently above their 20-day moving average and sectors like financials and healthcare floundering, Newton believes that the divergence between tech and other sectors cannot last long. He anticipates a pullback in bond yields and the dollar, providing an upward bias for stocks in the short term, but warns that the trend of higher bond yields and a stronger dollar will eventually be bearish for stocks. U.S. stock-index futures are higher, while benchmark Treasury yields are little changed, and the dollar is slightly weaker. Key companies reporting results on Friday include Schlumberger, Fifth Third Bancorp, Travelers, and State Street, with U.S. economic data due on consumer sentiment and existing home sales.