Take a look at the sector performance for the S&P 500. This is textbook bullish behavior we’re seeing.
Tech and communications services are spearheading the charge, just as they should be leading the pack in a healthy uptrend.
On the flip side, the defensive utilities, energy, and staples sectors are getting left in the dust as money rotates into risk-on plays.
Quite the contrast from last Monday when we had utilities and staples at the front of the pack while tech was a laggard. That kind of sector positioning screams bearish and risk-off.
But this week’s sector lineup is precisely what you want to see in a vigorous bull market. The high-beta, cyclical sectors are taking the baton from the defensive names.
The bulls are firmly back in the driver’s seat based on this intermarket evidence. Stay nimble out there.
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