Chart of the Day - Monday, April 8, 2024

🏆 Today’s Chart of the Day was shared by Bespoke (@bespokeinvest).

• The largest sector of the S&P 500 (Tech) is lagging this year, yet the index is hovering near record highs. Tech's relative performance peaked on Jan. 24th and is currently at a three-month low.

• While Tech has underperformed, Bespoke points out that several other sectors, including Communications, Energy, Financials, Industrials, Materials, and Utilities, have perked up over the same period.

• Other sectors remain relatively weak, including Consumer Discretionary, Consumer Staples, Real Estate, and Health Care. All four are at or near multi-year lows versus the S&P 500.

The takeaway: The legendary Ralph Acampora once said, "Rotation is the lifeblood of every bull market." It allows the leading sectors to correct or consolidate without dragging down the overall index.