We saw a strong week for the market indices as the Dow and S&P500 recouped the losses from the past couple of weeks and the Nasdaq touched all time highs.
Since the SPY bounced off it’s 50 period weekly MA last week, the market indices have not looked back. It’s hard to argue with the conviction of the buyers, as all pullbacks continue to be met with strong buying.
Last week we mentioned to keep an eye out on the VIX (the Volatility index) after the VIX appeared to break out of a prolonged downtrend.
However this week we saw the VIX break out of it’s up channel and sell off closing the week back at all time lows.
This sets up a very favorable environment for market indices to continue their rally and frustrate traders looking for more volatility.
Here’s an update on our sector rotation watch.
At this time there continues to be broad leadership across a number of sectors
The charts on various sectors look very strong. Notably –
Con. Discretionary, Con. Staples, and Healthcare hitting all time highs
Financials and Tech near their yearly highs
Industrials and Utilities – neutral
Builders and Energy – weak
The major sectors are posted here on Finviz for your viewing pleasure –