Chart of the Day - Monday, July 15th, 2019

Today's Chart of the Day was shared on Twitter by Tom Bruni of All Star Charts (@BruniCharting). It's a ratio chart showing the Broker-Dealers & Exchanges ETF, ($IAI) relative to the S&P 500 ETF, ($SPY). When this ratio is rising it means Broker-Dealers and Exchanges are outperforming the S&P 500 and vice-versa. Tom notes that among the industry groups within the Financial sector, Insurance ($IAK) "has been the clear leader". The Broker-Dealers and Exchanges ETF, $IAI has underperformed the S&P 500 in 2019, however, Tom points out that the ratio chart "continues to improve". In other words, the ratio chart is suggesting that Broker-Dealers and exchanges could begin to outperform the S&P 500 in the near-term. Tom emphasizes that this type of rotation is "not bearish".