Mark Newton, CMT

Broad Market Rises, Core Sectors Still Stuck

Despite the recent push in Equal-wtd S&P 500 ETF's like $RSP and DJIA back to new highs & some breadth improvement during the final week of May, important to know that sectors like Financials, HC, Industrials have NOT yet begun to turn higher relatively & outperform. Discretionary has been a welcome surprise as Consumer stocks snap back on Crude weakness. While positioning measures & skew are signaling concern, other sentiment measures largely haven't budged & still hard to describe sentiment as Uber-speculative and/or optimistic outside of a few small pockets within Tech While various exhaustion measures i track could be in place on daily, weekly basis this week, i'm not certain they prove to be too meaningful outside of a short-term Hiccup, only. Software roaring back along w/ Airlines helping Transports are certainly a positive developments and generally the recent breadth improvement & recent structural technical improvement coupled with lack of enthusiasm are still larger positives for risk assets. As always, price plays a bigger role than most other factors & until sufficient evidence of trend weakness happens, it's normally wise to ignore much of what "IS" making various investors cautious which DOESN'T factor in price. I'll discuss why the short-term forecast over the next 1-2 weeks could start to diverge a bit from the ongoing trend, but certainly continue to advocate NOT being too cute on trying to pick tops without any proof As always, i do NOT communicate short-term trading signals on X, but leave these for daily reports and/or Flash insights, but just a few important thoughts For those who still haven't signed on, feel free to peruse notes and see if they make sense for your own day to day process - https://t.co/v0f4RME3on