The One-Minute Market Report - Sunday, Nov. 19

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In this weekly market report, we will take a look at the various asset classes, sectors, equity categories, and exchange-traded funds that moved the market higher, as well as the market segments that defied the trend by moving lower. Identifying the winners and losers allows us to see the direction of significant money flows and their origin.


The S&P 500 had Another Strong Week

For the week, the S&P 500 was up 2.2%. After three consecutive up-weeks, we are now just 1.6% below the 2023 high water mark, which was set on July 31. We are 5.9% below the all-time high, which was set on Jan. 2, 2022.

S&P 500 daily prices 11-17-23

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A Look at Monthly Returns

This next chart shows the monthly returns for the past year. November appeared to be off to a strong start, after the market lost ground in August, September, and October.

S&P 500 monthly returns 11-17-23

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The Bull Market is Now Above the Long-Term Trend Line

This next chart highlights the 26.2% gain in the S&P 500 from the October 2022 low through Friday's close. We saw the market make considerable progress last week, and it moved above the long term-trend line.

Bull run 11-17-23

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The Golden Cross

The market entered a Golden Cross configuration (a Golden Cross occurs when the 50-day moving average crosses above the 200-day moving average) on Feb. 2, 2023. The spread between these two moving averages continues to narrow. Today, it stands at 1.7%, below the long-term average of 2.3%.

Golden Cross 11-17-23

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Major Asset Class Performance

Here is a look at the performance of the major asset classes, sorted by last week's returns. I included the year-to-date returns as well as the returns seen since the Oct. 12, 2022 low for additional context.

The best performer last week was the small-cap Russell 2000, as investors sought bargains among the asset classes that have lagged this year. The worst performing asset class last week was Managed Futures. These hedging vehicles tend to be short the market.

asset class returns 11-17-23

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Equity Sector Performance

For this report, I use the expanded sectors as published by Zacks. They use 16 sectors rather than the standard 11. This gives us added granularity as we survey the winners and losers.

Construction stocks and Retailers had a very good week, as mortgage rates cooled sharply from their recent run-up. Defense stocks lagged behind, giving back some of their recent gains.

Sector returns 11-17-23

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Equity Group Performance

For the groups, I separate the stocks in the S&P 1500 Composite Index by shared characteristics like growth, value, size, cyclical, defensive, and domestic vs. foreign.

All of the equity groups gained ground last week. The best performing groups were small- and mid-cap stocks. Market participation has broadened once again, which is a healthy sign for the market.

equity group performance 11-17-23

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The S&P Top 7

Here is a look at the seven mega-cap stocks that have been leading the market all year. These seven stocks account for 77% of the total year-to-date gain in the S&P 500. That's down from 87% just four weeks ago, providing evidence that participation in the bull market is broadening once again. 

S&P top 7 returns 11-17-23

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The 10 Best Performing ETFs from Last Week

Cathie Wood, the brain behind the ultra-high beta ARK funds, is having a very good run, capturing the top spot on the ETF leader board three weeks in a row.

top performing ETFs 11-17-23

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The 10 Worst Performing ETFs from Last Week

Oil gave back some recent gains, and managed futures were caught leaning short into a rising market.

Worst performing ETFs 11-17-23

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The 10 Best Performing Stocks from Last Week

Here are the 10 best performing stocks in the S&P 1500 last week.

Top performing stocks 11-17-23

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The 10 Worst Performing Stocks from Last Week

Here are the 10 worst performing stocks in the S&P 1500 last week.

Worst performing stocks 11-17-23

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Final Thoughts

The S&P Top 7 stocks continue to dominate the market. As the following chart shows, these seven mega-cap tech stocks account for 77% of the S&P 500 year-to-date gain. 

S&P 500 top 7 share 11-17-23

Since the recent market peak on July 31, the S&P 500 is down 1.6% and the Top 7 cohort is up by 2.5%. After several weeks of narrowing market participation, it now looks like leadership is beginning to broaden again. This can be seen in the performance of small- and mid-cap stocks, which have recently been outperforming large-caps.

As this market pullback continues to play out, I will be paying close attention to what's happening with the Top 7. For now, at least, they still call the tune.


More By This Author:

The One-Minute Market Report - Sunday, Nov. 5
The One-Minute Market Report - Sunday, Oct. 22
The One-Minute Market Report - Saturday, Oct. 7

Disclaimer: This content is for educational purposes only, and ZenInvestor.org is not an investment advisory service, nor an investment advisor, nor does ZenInvestor.org provide personalized ...

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