In this edition of StockCharts TV's Sector Spotlight, after looking at seasonality and long-term monthly charts in the last two episodes, I dive deep into the current sector rotation as it is playing out in the S&P 500 at the moment. The most important takeaway is that, after a leading role for the defensive sectors in the run-up to current market weakness, we now see (more than) 50% of market cap positioned inside the lagging quadrant. That will make it difficult for the market to start a new rally / UPtrend from current levels in the near future. At the end of the show, I discuss and refresh the use of $ONE as a benchmark after receiving some user questions after this article.
This video was originally broadcast on May 10, 2022. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube. You can also check out the video on the StockCharts TV on-demand website StockChartsTV.com, or on the associated app on mobile platforms like iOS and Android, or TV platforms like Roku, Apple TV, Amazon Fire TV and Chromecast.
Sector Spotlight airs weekly on Tuesdays at 10:30-11:00am ET. Past episodes can be found here.
#StaySafe, -Julius
Julius de Kempenaer
Senior Technical Analyst, StockCharts.com
Creator, Relative Rotation Graphs
Founder, RRG Research
Host of: Sector Spotlight
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