Discretionary leads the way on breakout to new weekly highs Array ( [cookie] => 173aaf-da1bbc-1f54b9-040222-4df555 [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 2 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 1 [subscriber] => 0 [role] => fsi_macro [visitor_id] => 568007 [reason] => [method] => ) 1
Tuesday’s mild gains remain under key resistance, but breadth has definitely started to slow in the last couple weeks. Following a close just above SPX-4124 on 4/3, the last 10 days have brought about only a 30-point SPX rally, or +0.70%. While certainly positive, it lacks some of the upward thrust that’s going to be necessary to keep this rally going, given Technology having begun to stall a bit in recent weeks.
In the short run, however, the continued rally in Financials in recent days as earnings have gotten underway seems to be a definite positive for the big banks. A pick-up in Regional banks would be a larger positive for the sector, in my view.
The standout early this week has centered on Consumer Discretionary, and Equal-weighted Discretionary has broken out to multi-month highs. Casinos, Homebuilders, and Hotels all appear attractive technically, and should push higher in the days ahead.
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