From the desk of Steve Strazza @Sstrazza
Yesterday I wrote a post about deteriorating market internals. I discussed breadth divergences as well as the lack of confirmation of the S&P 500’s recent highs from many important sectors and indexes.
In this post, we’re going to focus specifically on the Large-Cap Sector SPDRs that failed to make higher highs and are showing early signs of cracking. To no surprise, these are some of the most cyclical areas of the market including Industrials (XLI), Financials (XLF), Materials (XLB), and Energy (XLE).
This speaks to the lack of risk-appetite we continue to see not only within equities but across all asset classes right now.