Key Takeaway: Indexes make new highs, but action beneath the surface is not encouraging. Equity fund inflows surge in the first half. Bond yields moving lower are unlikely to support equity market strength.
The Energy sector fell out of the top spot in our S&P 500 sector rankings last week, though on an equal-weight basis and at the mid-cap and small-cap level, Energy remains the relative strength leader. Our industry group heat map confirms this broad strength within the Energy sector.
Communication Services and Technology are in the top two spots of our relative strength rankings. Financials and Real Estate round out the leadership group.
