Healthy US Market advance on Thursday, broadly based on strong volumes

The US Indices were up Thursday with all market caps bands ahead. The VIX was flat at 16 - it hit 65 intraday on 5 August, its highest level since Covid in 2020. The main indices were; DJIA +0.62%, S&P 500 +0.40% and Nasdaq +0.60% (Mag7 -0.05%). On an equal weighted basis (our measure) the overall market was up 1.2%. Breadth was much stronger at 63% (range of 12% to 88% over the last six weeks) combined much stronger volumes of 9.1b (the average daily volume over the last year of 7.8b and hit 15bn on Friday 8/20). 

One day returns as follows, equal weight basis: Mag7 -0.1% (all stocks in the -1% to +1% range), large cap +1.02%, medium cap +1.36%, small cap +1.11% and micro cap +1.28%. On a 1 and 2 week equal weight basis respectively; Market -0.5% and +3.3%, Mag7 +1.4% and +4.8%, Large caps +1% and +4.1%, Medium cap +0.9% and +5.5%, small cap -0.9% and +4.2% and finally Micro cap -1% and +2%. 

All the sectors ex Energy were in positive territory on Thursday. The sector bias was most definitely in favour of the Bull market sectors, the Micron update helped the Tech sector. China stocks pushed Academic & Education sector higher, Basic Materials continue to outperform, Aluminum stocks +5.9%, Silver 2.6%, Lithium 9.8%, Iron 4.2%. Technology was strong on the back of the Micron upgrades, with Technology Equipment (best performer - Semicon) and FinTech up strongly. Auto Parts and Tyres continues to push Consumer Cyclicals higher. Even Healthcare managed to perform relatively strongly +1.1% although Biotech still lags. Healthcare continues to be the worst performing sector and has underperformed the Market by 4.3% over the last week and 11.5% over the last 6 months. Tobacco and Personal Products helped Consumer non-Cyclicals outperform.

A notable number of 52 week highs in the following sectors: Basic Materials (across the sector), Consumer Cyclicals (Cyclical Consumer Products and Services) Industrials (across the sector ex Passenger Transport Services), Real Estate (Residential and Commercials REITs) and Technology (across the sector). Notable high volumes across the Market ex Utilities again.