Our models held steady on domestic indexes, still favoring growth and larger cap names. Overseas, poor data out of Europe sent Foreign Developed names lower. There were signs of rotation out of mega-cap/AI-themed/tech names at the beginning of June, yet it only lasted a week. We will be watching closely to see if the market's slip from last week continues, or if it was a pause before going higher.

Anxiety has grown over how far central banks will go on their hiking cycles to tamp down inflation. The longer and higher they go, the chance of pushing the economy into recession increases. Jerome Powell added to the angst last week by saying the US may need 1 or 2 more increases by year-end. The Fed gets another inflation reading from their preferred index on Friday.

As of last night, developments out of Russia caused modest moves in risk assets globally after a deal was brokered to halt Wagner's troop's advance. Click here for the latest.

Among sectors, we are seeing Discretionary, Communications, and Technology are on top for a second straight week. More economically sensitive sectors like Energy and Materials are underperforming according to our model. Picking names with relative strength within most sectors has remained the dominant and most effective strategy.