Sector Strength

The major indexes show the large caps as the leaders, while the small and mid caps are starting to lag. This is generally a sign of some market weakness.

The sectors show a bit of strength developing for the defensive areas, but it is a good sign to see cyclicals leading.

Among the industries, the bulls will never complain as long as the semiconductors and home builders are leading.

The big story in this spreadsheet is that most of the US ETFs have shifted towards the middle, and the foreign ETFs have moved from far left towards the right. Opportunities have broadened outside the US and into the foreign ETFs.

From a longer-term perspective, the areas to avoid are Bonds, Energy, Gold, Biotech and Canada.

The areas of concern to watch over the coming weeks are Small Caps, Mid Caps, Financials. If these areas continue to weaken then it would be a concern for the market overall.