FYI: This May so far has not been the kindest to equities as Friday marked another down week. With markets facing this selling, investors have been dumping more cyclical sectors for defensives. As shown in our Trend Analyzer below, Financials (XLF) and Industrials (XLI) saw the worst of last week's declines as XLF fell the most at 2.18% with XLI not far behind down 1.9%. Technology (XLK) and Consumer Discretionary (XLY) were also notably weak falling over 1%. As these more cyclical sectors saw sizeable declines, defensives rallied. The Real Estate sector ETF (XLRE) and the Utilities sector ETF (XLU) rose 1.47% and 1.41%, respectively, as Consumer Staples (XLP) managed to gain 0.77%. This brings all three to firmly overbought levels, whereas XLRE and XLU had actually been neutral only a week ago.
Regards,
Ted
https://www.bespokepremium.com/interactive/posts/think-big-blog/defensives-surging
