Defensive Stocks Are Sending a Signal

Chris Vermeulen's takeaways

• Top takeaway As of July 2026, Vermeulen argues that big money rotating into defensive sectors (health care, consumer staples, utilities) is an early warning sign for the broader market.
• He sees the dollar breaking out as a further warning signal alongside the defensive rotation.
• He reads weakness in the stock market directly from the price charts, with the Nasdaq among the names showing it.
• He points to gaps and sharp pops and drops as evidence of increased volatility, with big bouts of both selling and buying.
• His conclusion is that markets are weak and still deciding on direction, so investors need to stay aware.