On this edition of StockCharts TV's Sector Spotlight, I start the month with an overview of rotations in asset classes and sectors last week using Relative Rotation Graphs. The main theme remains intact; the stock market is in a long-term uptrend and stocks continue to outperform bonds. However, in the near future, a pause or a mild setback for stocks is expected, primarily driven by relative weakness in Technology, Consumer Discretionary and Health care, aided by some expected seasonal weakness for Financials. I then move on to the main part of this week's show; the monthly charts as they were completed last Friday.
As of this episode, I switch to using the underlying INDEXES instead of the more-commonly-used ETFs for these long term pictures, and I will explain why. Wrapping up the views per sector as seen on these monthly bar-charts results in the conclusion that 84% of the market last month reached both a new high, as well as a new closing high, while a whopping 94% of the market capitalization is considered to be in an uptrend.
This video was originally broadcast on May 4th, 2021.Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube. You can also check out the video on the StockCharts TV on-demand website stockchartstv.com, or on the associated app on mobile platforms like iOS and Android, or TV platforms like Roku, Apple TV, Amazon Fire TV and Chromecast.
Sector Spotlight airs weekly on Tuesdays at 10:30-11:00am ET. Past episodes can be found here.
#StaySafe, -Julius
Julius de Kempenaer
Senior Technical Analyst, StockCharts.com
Creator, Relative Rotation Graphs
Founder, RRG Research
Host of: Sector Spotlight
Please find my handles for social media channels under the Bio below.
Feedback, comments or questions are welcome at Juliusdk@stockcharts.com. I cannot promise to respond to each and every message, but I will certainly read them and, where reasonably possible, use the feedback and comments or answer questions.
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RRG, Relative Rotation Graphs, JdK RS-Ratio, and JdK RS-Momentum are registered trademarks of RRG Research.
