Tech In Orbit
The S&P 500 has been closing in on new 52-week highs as the index gains another 1.3% headed into the long weekend. Although the index has been moving higher, looking at relative strength lines across the S&P’s eleven sectors, it would be hard to tell. Indicating what has broadly been mediocre breadth at best, the only two sectors with relative strength lines that are currently moving higher are Tech and Communication Services. The former has made a vertical move higher over the past few days in the wake of the surge in NVIDIA (NVDA), while the climb in Communication Services has been more steady. As for the other sectors, relative strength lines have been falling off a cliff for everything except Consumer Discretionary, which has been flat.
Again, Tech has led the way higher with a sharp move this week. The sector is now extremely overbought, trading 3.23 standard deviations above its 50-DMA; the fifth most overbought reading on record. Since 1990, there have only been a handful of times in which the S&P 500 Tech sector has traded at least 3 standard deviations overbought, with the most recent being roughly six years ago. But to find the last time the sector was as extended as it is today, you’d have to go all the way back to early 2004!
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The Closer – Debt Ceiling Deal Performance, GDP, New Low in New Orders – 5/25/23
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Looking for deeper insight into markets? In tonight’s Closer sent to Bespoke Institutional clients, we start out with a look at S&P 500 performance after past debt ceiling deals are reached (page 1) followed by a rundown of the latest update of GDP (page 2). We then review the rest of today’s economic data including the Chicago Fed National Activity Index and pending home sales (page 3) and Kansas City Fed manufacturing index (page 4). We closeout with a 7 year note auction review (page 5).
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Bespoke’s Weekly Sector Snapshot — 5/25/23
This content is for members onlyThe Closer – Minutes, Metals Meltdown, Historic Inventory Draw, Fund Flows – 5/24/23
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Looking for deeper insight into markets? In tonight’s Closer sent to Bespoke Institutional clients, we start out with a rundown of the meeting minutes and commodity price action (page 1) followed by a recap of today’s EIA data (pages 2 and 3). Next we provide an update on fund flows (page 4) before closing out with a recap of today’s 5 year note auction (page 5).
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