Another tentative, low-energy session in which an early rally attempt buckled – yet the market refuses to break down so far and the action underneath the indexes is fine.
To this point, the market seems to be cooling off/downshifting into neutral since coming into last week a bit overheated and stretched. Not all that different at the moment from how things went in July after the S&P first broke above its pullback/consolidation zone. Needs to hang above 3400 or so for this pattern to match up.
Momentum/mega-cap growth names under pressure while the average stock, market breadth, Treasury yields and financials make some headway. A big support for the secular-growth stocks has been low yields, and in particular negative real yields (adjusted for inflation). Now yields rising mutes the appeal of expensive growth and gives a boost to cheaper cyclicals. Not that such a shift is assured or would be smooth, necessarily.