FYI: Whenever you talk about which sectors of the market are working, market cap is one aspect that is usually overlooked. In the charts below, we highlight the relative strength of each S&P sector compared to its corresponding index across all three market cap levels (S&P 500 large cap, S&P 400 mid cap and S&P 600 small cap). For example, in the Consumer Discretionary sector we compare the performance of small cap Consumer Discretionary stocks to the S&P 600 Small Cap Index. Rising lines indicate that the sector is outperforming its index while a falling line indicates that the sector is underperforming. As you will see in the charts, relative strength normally moves in the same direction across all three market cap levels, but there are times when they diverge, and these divergences can sometimes be wide and a sign that a turn for the entire sector is coming.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/sector-relative-strength-by-market-cap/
