2026-08-16 · Rotation Holds, Retail Earnings Loom
Every confirmed reversal signal this week pointed bearish and clustered in this year's crowded winners, while defensive staples quietly saw inflows, as the market heads into its biggest retail-earnings week of the summer.
The Signal
All three major indexes slipped slightly to close out the week but still finished higher than where they started, with volatility sitting low and calm. The backdrop stayed friendly: July's inflation report cooled on both headline and core readings, and wholesale prices were soft too, keeping the case for eventual Fed easing alive. The complication is…
The skinny
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