The S&P 500 is trying really hard to rise, but it's meeting stiff headwinds regardless of yet another strong showing in the high yield corporate bonds (HYG ETF).

While the stealth stock bull market trio (energy, materials, industrials) is having a good day, it's technology (XLK ETF) that catches the eye. As tech continues to lead the S&P 500 both on the way up and down, the hesitation of recent days is telling. It's true there's a rotation going on within the sector, and that semiconductors (XSD ETF) are at their recent highs, but their price action isn't exactly exciting in the short term either.

Stocks are getting vulnerable to a takedown over the coming days. Will tomorrow's employment data, China developments or US riots be the catalyst? There's no shortage of them really.

For now, staying on the sidelines remains the right course of action from the risk-reward perspective.

Thank you.

Monica Kingsley
Stock Trading Strategist
Sunshine Profits: Analysis. Care. Profits.