S&P 500 Overview
The S&P 500 (SPY) moved higher last week and the first half of this week, peaking on Wednesday. This allowed the SPY to trade over $600 for a couple of days. While $600 does not mean anything, it likely serves as a psychological level for many. It is also worth noting that the SPY has gained over 20% since the intraday low on 4/7/2025.
When looking at underlying factors in the S&P 500, Momentum continues to lead. Quality overtook Low Volatility at the beginning of this month.
Sector Overview
Breadth weakened across the market as the S&P 500 started to near its all-time highs again. The exception is Energy (XLE), which is still showing strength.
The strength shown by XLE in breadth was mirrored in performance this week, returning over 5%. This performance brings XLE back in line with the SPY’s performance year-to-date.
Looking at the Weekly RRG, Industrials (XLI) remain firmly in the leading quadrant. Utilities (XLU) have entered the weakening quadrant.
Disclaimer: Content is provided for informational purposes only and is not a recommendation to buy or sell any security. Please do your own research before making investment decisions. All information is from personal research unless otherwise noted. Best efforts are made to ensure that all information is accurate, but unintended errors and misprints may occur. I may own positions in the securities discussed.