Sector Strength

This spreadsheet is telling us to own foreign, large cap and the defensive stocks.

The leading sectors are Technology, Health Care, Utilities. These are the sectors that run up when investors are feeling cautious.

Some would disagree regarding Technology, but the stellar balance sheets of large cap technology is now considered defensive.

Foreign stocks are clearly outperformers.

Bonds are breaking to six months highs.

The Mexico ETF took a hit today with a clean break below the 50-day. This ETF is no longer a leader.

Not the best day for Financials either. Higher rates are looking less and less likely.

Yikes! A six month closing low for the Regional Banks.

Outlook

The long-term outlook is positive, but the caution flag has been raised.
The medium-term trend is down.
The short-term trend is up.