Welcome to May…

Monday’s action was just a slow grind to the downside, giving back almost half of Fridays surge. The loss in the S&P 500 ($SPY) of .50 percent was modest and could just be a correction after the Friday’s move.

The nine offensive sectors were mostly lower with Energy ($XLE) leading the way. I did see some bids in Healthcare ($VLV) and Consumer Discretionary ($XLY). Banks were fairly strong as the Broker-Dealer iShares ($IAI) gained over 1 percent. The Regional Bank SPDR ($KRE) advanced .50 percent, thanks to the move in the 10-yr bond.

The 10-YR Treasury Yield ($TNX) surged to 2.27 percent and hit its highest level of the year, while REITs ($VNQ) were hammered. Precious metals were under pressure as gold fell .39 percent, platinum declined 1.1 percent, and palladium lost 2 percent.

Watch the downside this week. Have a good trading day!