A funny thing happened back in May.
The Cyclicals stopped going up. You can see it in the NYSE Advance-Decline line, which has been falling ever since.
But you can really see it when you overlay the Industrials with Materials and Financials.
Chop Chop Chop:
Some stocks are going up.
These are some of the most important sectors in the market.
Industrials historically have the highest correlation with the S&P500 of any sector. And we don’t have bull markets in America without Financials.
So we want to keep an eye on these. Until they break out (if they even breakout), things are likely to remain a mess.