By recent standards, from a headline perspective, this week has been a bit quieter. Most major economic data was in the rearview and deadlines for tariffs and the debt ceiling are still a few weeks away. To start the week the trading action was pretty boring. Coming out of the long weekend the S&P 500 hit a marginal new all-time high but as we pointed out in last week’s recap there were signs of caution beneath the surface with defensives outperforming and investors moving up the capitalization scale. At the same time investors seemed to keep piling into many of the same stocks which kept hitting new highs every day. That dynamic seemed to hit a bit of a breaking point late in the day on Wednesday and there has been a momentum unwind over the last two days.

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