Key Takeaway: Despite being dismissed, bad breadth getting worse not better. Defensive groups asserting leadership as risk off trades gain strength. Indexes catching down rather than breadth getting back in gear.
Defensive sectors are perking up on an absolute and relative basis. Utilities, Consumer Staples and Real Estate were all positive last week (Staples even made a new high) and they occupy the top three spots in our short-term relative strength rankings. Staples and Utilities are still longer-term relative strength laggards.
Real Estate remains the top-ranked sector (and is an industry group leader) across the size spectrum.
