Today’s Chart of the Day was shared on Twitter by Strategas Research (@StrategasRP). The Nasdaq officially fell into correction territory today (10% off highs). On the other hand, the Dow closed just shy of a record high. Sector rotation is to blame for this bifurcated market. Growth/Tech stocks continue to sell off, while cyclical areas of the market have caught a bid. Strategas shows Banks, Industrials, and Energy on an equally-weighted basis. All three of these value-oriented sectors are breaking out to new 52-week highs. In a comment to The Chart Report, Todd Sohn of Strategas said, "The question is, will the weakness in Tech spill over to the broader market? So far, that's not the case. I would emphasize watching the indices on an equally-weighted basis to get an idea of how the average stock is holding up."
Chart of the Day - Monday, March 8th, 2021
March 8, 2021
