Overview

US equities eased further from their recent highs but small cap and micro-cap remain relatively strong. Technology and Industrials lead, while Financials improved. Breadth has weakened slightly, but bullish sentiment remains subdued with AAII bears higher than bulls this week.

Here's the daily and weekly chart of the S&P 500:-

It didn't quite manage to print a new all time high during Tuesday's session before easing back and heading lower for the rest of the week. After a brief surge Friday it finished down by the close, at six-week lows.

The Russell finished higher on the week, and continues to look strong relative to the S&P 500:-

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That's also evident in the Microcap Index ($IWC) which posted its ninth straight weekly gain:-

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Sector Analysis

Technology ($XLK) and Industrials ($XLI) are the leading sectors and are dominating the new highs list. Also of note are Financials ($XLF) which are starting to improve:-

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Weakness was in Healthcare ($XLV), Consumer Staples ($XLP), and Utilities ($XLU), which are now all below their 50-day MA:-

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Away from the Sector SPDRs, Semis ($SMH) made a new high, Gold Miners ($GDX) sank below their 50-day MA, and Biotech ($IBB) retreated below its 20 EMA but remains in an intermediate uptrend, despite what the drama and headlines surrounding the sector might have you believe.

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Alpha Capture Portfolio

Our portfolio fell 1.3% this week vs a 0.7% decline for the S&P which takes it to -3.6% YTD. It remains fully allocated with 10 open positions and total open risk of 3.8%.

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Watchlist

Our watchlist continues to reflect the sector shifts this week following weakness in healthcare, staples, and utilities, while technology continues to show strongly and financials are improving.

Here's a small sample from the full list of 20 names:-

$MS

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$DFS

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$SWK

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$AMBA

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$XLNX

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