by David Templeton, Horan Capital Advisors
We noted in a post a week and a half ago that the market's defensive sectors have been the main driver of the S&P 500 Index's strong performance this year. In this earlier post, Sector Rotation May Be Underway, we noted investors may be rotating out of the defensive sectors and into the more cyclical ones. In that regard, J. C.Parets of All Star Charts wrote an interesting article showing the more cyclical sectors recent strong performance vs. the staples sector is retesting resistance for the fourth time in two years. This number of retests has historically been a bullish indicator and could be for cyclicals in this now. The question is whether this rotation into cyclicals can be sustained and drive the market to further highs.
Source: All Star Charts
h/t: The Kirk Report
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