Key Takeaway: Cyclical rally needs to prove its strength. New lows and expanding downside volume suggests more fissures beneath the surface. Focus on Value Line Geometric Index for evidence that downside risks are building.
Financials sector has continued to slip in our relative strength rankings, falling to its lowest level in over a year and dropping out of the leadership group.
Consumer Staples remain toward the bottom of the overall rankings, but have been the top-ranked sector on a short-term basis and we are seeing evidence of improving trends at the industry group level across market capitalization levels.
Large-cap health care is rising in the rankings, but this strength is not echoed at the mid-cap or small-cap level (or even on an equal-weight basis at the large-cap level)
