Key Takeaway: Price volatility fueling sentiment reset. Indexes under pressure as the tide turns against their largest components. Positive breadth divergences lacking.
Higher rates are fueling strength in Energy and Financials - leadership from those sectors can be seen across market cap levels.
Our industry group heat map shows continued deterioration from large-cap groups and improvement from small-cap groups. Some 8% of large-cap groups made new 13-week highs last week vs 42% that made new 13-week lows. Among small-cap groups, it was 17% at new highs and only 13% at new lows.
