Mike Santoli's market notes: Summer sideways phase, banks get relief, Spotify the next Netflix?

  • The footing is soft but the market remains upright for now and trying to move ahead. The indexes idling after yesterday's little shakeout, which is best seen as part of a pullback/digestion that began two-and-a-half weeks ago, when the S&P's rebound rally peaked, confidence in an easy reopening swelled and stocks registered an array of overbought extremes.
  • Nothing about yesterday changed that set-up – most stocks retrenching from early-June highs, the cumulative effect of rising Covid cases weighing on cyclical/retail/travel stocks and the monster-cap Nasdaq leaders needing a rest after a rare upside streak.