FYI: It has been a pretty nutty week for the equity market over the last four days as sectors which had been holding things up have sold off sharply, while sectors that had been left for dead have been picking up a little bit of late. The charts below show the relative strength of the S&P 500 Technology and Financial sectors. As usual, rising lines indicate that the sector is outperforming the S&P 500 and vice versa. For much of 2018, these two sectors have been outperforming the rest of the market. With the two sectors accounting for just about 40% of the entire S&P 500, their strength was enough to hold the rest of the market up. This week, that has all changed, though, as both sectors are down around 4%. For Technology, it hasn’t seen a downturn relative to the broader market that was this steep since late November, while the last decline of this magnitude for the Financial sector was in December.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/leaders-lag-and-laggers-lead/
