Sector Spotlight: When Defensive Sectors Break Support…

In this edition of StockCharts TV’s Sector Spotlight, I kick off the show by answering two questions from the mailbag. I then move on to the current rotation of asset classes, observing that a more pronounced pause in the turnaround for commodities seems imminent. Meanwhile, signals suggesting a rotation from stocks to bonds are getting more and more pronounced. I then look at current sector rotation, where the big picture remains intact. However, it now looks like the defensive sectors, which had been holding up pretty well so far price-wise, are now also breaking important support levels, which opens up more downside potential for these sectors as well. All in all, the situation for SPY remains tricky.

This video was originally broadcast on June 21, 2022. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube. You can also check out the video on the StockCharts TV on-demand website, or on the associated app on mobile platforms like iOS and Android, or TV platforms like Roku, Apple TV, Amazon Fire TV and Chromecast.

Sector Spotlight airs weekly on Tuesdays at 10:30-11:00am ET. Past episodes can be found here.

#StaySafe, -Julius