Below are sector relative strength charts that we include in our weekly Sector Snapshot report available to both Bespoke Premium and Bespoke Institutional subscribers. (Click here to sign up for one of these packages now.)
These charts compare the sector’s performance versus the S&P 500 over the last year. When the line is rising, the sector is outperforming the S&P 500. When the line is falling, the sector is underperforming the S&P 500. The blue dots in each chart represent FOMC meeting days, which lets you see if Fed policy announcement mark turning points in terms of sector relative strength.
The main thing that stands out in the charts is just how strong the defensive sectors have been lately. Check out the relative strength for Consumer Staples, Telecom and Utilities. We’ve seen huge jumps in relative strength for all three of these defensives areas of the market over the last three months. That’s not the type of action market bulls want to see.