Peaches and Cream Monday

Today marks thirty-nine years to the precise date (Monday, October 19th, 1987) of the infamous "Black Monday" crash. Unlike Black Tuesday, which occurred on October 29th, 1929, there are still quite a few folks alive who can give firsthand accounts of Black Monday. 

No such Black Monday occurred today to pay homage to that crash, however.

Instead, we have been treated to another session of a pre-market gap up in the semiconductors and Nasdaq as a whole leading a mixed broad market bounce. Small caps, on the other hand, are only marginally higher on the session despite having pinned below the IWM ETF for over a week now. 

Oil has been all over the place on a hodgepodge of headlines throughout the session. But still looks quite bullish multiple timeframes as today could easily be a mere consolidation day. 

From my perch the firmness of rates is noteworthy, as rates on the 10-Year spiked this morning well off the overnight and pre-market lows. On the back of rate staying stubborn despite odds of a Fed rate hike next week cratering, note the REITs are under pressure again, seen on the IYR ETF daily chart, below. The recent bounce thus far looks like nothing more than a bear flag in the context of a strong downtrend. 

It may not be Black Monday, but it does seem odd that a Monday morning broad market bounce still has glaringly weak sectors soundly in the red.