Key Takeaway: Index strength fueled by new found momentum. New highs lists are expanding, but not very rapidly. Persistent inflation, sputtering growth are a headache for the Fed.
Consumer Discretionary has been the top-performing large-cap sector on a short-term basis and was one of only two large-cap sectors to make new highs last week (Information Technology was the other). The sector’s relative strength at the large-cap level is not echoed among mid and small-caps, but it is still fairly broad-based (it’s equal-weight ranking matches its cap-weight ranking).
Energy and Financials have lagged on a short-term basis, but remain at the top of our relative strength rankings across size levels.
