Don't Ignore This Chart!

A Dramatic Shift in Sector Rotation this Month


There has been a clear changing of the guard in April and chartists can see this change with a PerfChart on two different timeframes. The first PerfChart shows performance for the nine sectors SPDRs and SPY for the first three months of the year. Notice that the Consumer Staples SPDR and Utilities SPDR were the leaders. The Technology SPDR and Industrials SPDR were also performing well. The Finance SPDR and the HealthCare SPDR were the clear laggards because both were down around 5% in the first quarter. 

The situation changed quite dramatically in April. Finance and healthcare went from laggards to leaders with big gains the last three weeks. The Materials SPDR and Energy SPDR were already performing well in the first quarter and both performed even better the last three weeks. Notice that they are up more the last three weeks than in the first three months of the year. Technology and utilities are the big losers this month, and consumer staples is underperforming the market. It is a rather strange rotation because tech and consumer discretionary are lagging, but there is enough sector strength to keep the broad market uptrend in place. 

Thanks for tuning in and have a good day!
--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at 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
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