Consumer Discretionary Select Sector SPDR Fund

  • XLY

  • $183

  • +1.12%

  • $182

  • $184

  • $181

FSI Sector Allocation

Ticker Appearances

Thu, February 8, 2024 | 3:48PM ET
Mark
Mark L. Newton, CMT AC

Head of Technical Strategy
Thu, February 8, 2024 | 3:48PM ET
Another day which is more interesting than the SPX net change might indicate with prices just marginally "green" at +0.06% at 4997.37 hovering just below 5000. Both Small and mid-caps are up sharply today, while both US Treasury yields and US Dollar have pushed higher. Large-Cap Tech influence is showing a rare period of underperformancce as FTNT -0.54% , AAPL 0.22% , ORCL 0.65% , AMD 1.28%  are all lower. Yet the strength of MPWR, ON, ANET, NXPI, AVGO gains are helping Semiconductor stocks and the broader equal-weighted Technology sector to show gains of more than 1%. Thus, while markets might seem flat today, Tech is actually showing some stellar outperformancel along with Equal-weighted Discretionary. Both of these RYT and RCD are up more than double what XLK 1.27%  and XLY 1.12%  are showing in Thursday's trading. As discussed previously, SPX 5000 has no real significance outside of psychological reasons, and likely should be surpassed next week.
Tickers
Fri, February 2, 2024 | 12:07PM ET
Mark
Mark L. Newton, CMT AC

Head of Technical Strategy
Fri, February 2, 2024 | 12:07PM ET
Today is showing an extraordinary amount of divergence that's been quite rare in recent months, if not years- Nasdaq is up 1.1% and SPX higher by 0.63%, but these indices are diverging substantially from actual market performance- meaning 9 out of 11 sectors are lower on the day and breadth is hugely bearish, by nearly 3/1 based on advance/decline as well as volume. Technology as a sector in Equal-weighted terms is actually down on the day (RYT -0.18%) while XLK 1.27%  and XLY 1.12%  are higher by +0.65% and +0.80% respectively. Thus, we're seeing a huge amount of outperformance by Large-Cap Technology that's been rare for even recent months. Technically for those who don't study internals, it appears like the market's having a great day. However, it's often a warning sign if most stocks are falling, but a select few (META 2.76%  +20% today alone, AMZN +7%) are carrying markets while the broader market suffers. Since most investors follow and are benchmarked to the SPX, it's right to study SPX technicals. Yet, this large-cap divergence is growing more extreme, and it's just worth pointing this out on a rainy Friday- Have a good weekend All!
Tickers

Tickers

Trending tickers in our research
Ticker Price Chg%
IWM
$224.43
+1.75%
NVDA
$113.00
+0.64%
COIN
$242.84
+4.89%
MARA
$21.56
+6.31%
XLF
$43.41
+1.57%
TSLA
$219.98
-0.12%
AMD
$140.09
+1.28%
LLY
$804.25
-2.06%
QQQ
$463.21
+1.08%
SMLR
$33.00
+2.71%

^Prices as of 2024-07-26 16:15:15