This week’s top performing sectors on a relative basis were Technology and Industrials with a gain of 1.45% and 1.33% respectively. The poor sector performers were Financials with a loss of 2.50% and Health Care with a decline of 1.06%. Additionally, mid cap and small cap value stocks lost 0.25% and 0.65% against growth stocks.
The chart of the normalized ratio of the Financial SPDR (XLF) reveals that the Financials Sector is currently in a free fall whereas the Industrials Sector (XLI) and the Technology Sector (XLK) are in a solid uptrend even though they are a little bit overbought on a relative basis. The shaded areas represent two standard deviations above and below the SPDR’s 50-day moving average.