September E-mini S&Ps (ESU14 +0.15%) this morning are up +0.10% on the prospects for a strong U.S. Jul durable goods orders report later this morning, while European stocks are up +0.18% on optimism a resolution to the conflict in Ukraine can be found.

The market is expecting today's July new home sales report to show a +5.4% increase to 428,000.

A basic investment concept is to that high quality stocks fare better in down markets than low quality stocks, and therefore in late stages of a Bull market with generally fully valued stocks, tilting equity allocations toward high quality is prudent.

The best large cap sector is utilities, which offer robust seasonality ahead of summer. Basic materials have strengthened thanks to improving scores for oil & gas.