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IT'S ALL RELATIVE

Arthur Hill

Arthur Hill

Chief Technical Strategist, TrendInvestorPro.com

The PerfChart below shows the percentage change for the S&P 500 and the nine sector SPDRs. The S&P 500 acts as the benchmark for relative performance. Sectors with greater percentage gains are outperforming the S&P 500. Sectors smaller percentage gains are underperforming. Defining the leaders and the laggards can tell us a lot regarding the quality of the rally. Relative to the S&P 500, the Financials SPDR (XLF) is the leader of leaders since early March. Other leaders include the Consumer Discretionary SPDR (XLY), Industrials SPDR (XLI) and Materials SPDR (XLB). Surprisingly, the Technology SPDR (XLK) is simply performing in line with the S&P 500. Leadership from the consumer discretionary sector is probably the most important aspect of this rally. This is the most economically sensitive sector and leadership here bodes well for an economic rebound.
 
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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More