Is there a Sector Rotation?
Igor Manukhov - Jul 28, 2023
Industrial stocks start to outperform technology and consumer discretionary.
Technology and consumer discretionary stocks have been leaders of the 2023 rally so far. However, going through the sector charts, I noticed that leadership might be changing. The charts below show the relative strength lines that compare the Industrial sector to the Technology sector (red line) and Industrial sector to the Consumer Discretionary sector (black line). If these lines are rising, the Industrial sector is outperforming the Technology sector and Consumer Discretionary sector respectively. As you can see, these readings started to go up.
Its too early to tell, however I believe this relationship is worth watching.