Relative Strength of Industrials and Technology vs. S&P 500

by Bespoke Investment Group

The chart below shows the relative strength of the Industrials and Technology sectors versus the S&P 500. When the lines are rising, it indicates that the sector is outperforming the S&P 500 and vice versa when the line is falling. So far this Summer, it's been rough sledding for the Industrials sector. In June, the sector was handily outperforming the S&P 500, but now just two months later the sector is underperforming the S&P 500 by its largest amount in a year.

While Industrials have been slumping, the Technology sector has been ramping. Although there have been numerous calls to avoid the sector during this downturn, Tech stocks have been handily outperforming the market. In fact, heading into today, Technology was the least oversold of the ten sectors.

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