ROTATION FROM 'GROWTH' TO 'DEFENSIVE' OVER LAST 10 DAYS

26 ธ.ค. 2022

CHART DISPLAYS LAST 30 DAYS

Utilities (XLU) outperforming the broader market as represented by (SPY) and growth oriented, tech based, sub-sector (XLK) over the last 30 days.

This has a correlation with an increased 'potential' for instances of heightened, near term (2 to 4 weeks) market volatility.

During the recent selloff we can see that the 'bids' did not push the broader market as represented by (SPY) or the S&P 500 tech sector (XLK) back over its pre-selloff top. On the other hand, the market did buy the utilities (XLU) back up over its respective, pre-selloff top. (see yellow horizontal lines)

So utilities stay bid while tech and the broader market begin to falter. In my opinion this is what a rotation out of 'growth' (XLK) from the last 6 weeks and into 'defensives'(XLU) looks like from a price structure perspective. I would interpret this as an expression of 'risk off' market sentiment going into 2023. (NOT FINANCIAL ADVICE)