Key Takeaway: Bonds make good on their resolution to take rate hikes more seriously. Breadth thrust prospects are fading but global resiliency is encouraging. Fed will be late to the rate hiking party and so recent tightening cycles may not be as relevant.
Sector-level volatility is producing big swings in relative strength rankings. Thanks to a double-digit positive weekly return (while the median sector was down), Energy surged to the top of our rankings, followed by Consumer Staples in the number two spot.
Financials also surged in the rankings and joined Staples and Energy in making new highs last week.
Health Care, Technology and Consumer Discretionary all plummeted in the rankings, with weakness being seen across various capitalization levels.
