Morning Notes — Remaining Headwind

The fundamental landscape remains solid with bond yields, commodity prices, PMI data and earnings revisions keeping the balance of risks aimed higher.  Incoming macro data has also been supportive with the US Economic Surprise Index advancing well into positive territory.   Equities also look technically attractive in the near term, underpinned by solid market breadth during the recovery from oversold levels. The broad sector participation actually leaves us with reversal indicators in both growth and value sectors.  However, the risk of multiple compression in growth sectors like Tech is far greater given stretched valuations and extremely crowded positioning.