Equities recovered well this week led by gains in Industrials, Consumer Discretionary, Materials, and Technology. Energy slumped to six-month lows, and was joined to the downside by Healthcare. The leaders of the last few weeks - Utilities and Consumer Staples - were relatively weak.
This was a good week for transports, small / mid-cap, and growth names, and offered the first sign in several weeks of some improvement in breadth and price action. Sentiment measures also show optimism at a new low since the election (a positive).
Here's the S&P on a daily and weekly chart:-
This week's gains saw the S&P test the underside of its 20 and 50-day MAs, and while it was encouraging progress, it has further work to do to break the current sequence of lower highs and lower lows over the last 7 weeks.
The Dow and NYSE Composite are in a similar situation, but the Russell 2000 and NASDAQ (below) both managed to climb back above their 10-wk MA, while the Transports posted its highest weekly close in 5 weeks.
There's a welcome change at the top this week with Consumer Discretionary and Technology taking back the lead roles.
They're followed by Industrials, Utilities, Staples, and Real Estate which are all above their 50-day MA. Then comes Materials, and Healthcare, below their 50-day, but above the 200-day.
At the bottom remain Financials, which recovered but still has much work ahead, and Energy, which slumped back to its pre-election levels of early November, and is the only sector below its 200-day.
Alpha Capture Portfolio
Much like the market, our model portfolio made back all of last week's losses, climbing +1.31% this week vs +0.85% for the S&P. We had four new entry signals across different sectors to bring ...