Sector Rank Spread Little Changed

Sector Rank Spread Leaps Ahead, A New Economic Expansion At Gate

The Sector Rank Spread leaped ahead. Beside that, I see other evidences that a new economic expansion is emerging. I'm composing an article for that. Will publish on SeekingAlpha.com once done. Stay tuned.

Sector Rank Spread Sees Big Jump Again

The Sector Rank Spread sees a big jump again. The key driver for this change is a sudden 5-point drop of XLF's rank. I expect to see the expansion of SRS leads the market up from here.

Sector Rank Spread Is Flat

Sector Rank Spread Edged Higher

Sector Rank Spread Retreated a Bit from All Time High

Sector Rank Spread All Time High

The Sector Rank Spread made an all time high this week, though we only have less than four month history. It is an encouraging sign that the tendency of sector rotation edged up which signified that the bull market may still have legs.

Sector Rank Spread Is Flat

Sector Rank Spread Downtrend Continues

Sector Rank Spread Potential Downtrend

The Sector Rank Spread moved lower last week and now it's in a potential downtrend. It appears that last week's price action consumed some tendency of sector rotation. Nonetheless, fluctuations are normal in an earnings season, and I wouldn't read too much into it as for now.

Sector Rank Spread Fluctuates Ahead of Earnings Season

The Sector Rank Spread edged up slightly ahead of the earnings season, which will be unofficially kicked off by Alcoa's earnings report (AA) the coming Monday. Fluctuation is normal during an earnings season as new fundamental data enter the ranking system. In the past four weeks, the SRS was contained in a narrow band. We think that this week's slight change is not significant. We'll have a stable outlook after the earnings season.

Sector Rank Spread Moves Lower

The Sector Rank Spread moved lower last week. Although the earnings season does not officially start, many companies already reported earnings or will soon report it. As new fundamental data entering the ranking system, we are expecting to see fluctuations of the ranks and the SRS. At this point I wouldn't jump to any conclusion. Still a shrinking SRS reduces the tendency of sector rotation and add less fuel to the rally. As always, cautions are suggested.

Sector Rank Spread Continues Uptrend

The Sector Rank Spread edged higher and it continues uptrend. The development is positive as the tendency of sector rotation increased, which will add fuel to the bull market.

The new Risk Appetite Spread edged lower but its uptrend appears intact. It's also positive to the bull market as risk appetite is in the mending,

Sector Rank Spread Edged Lower

The Sector Rank Spread edged lower last week, but still in uptrend. It is positive that the tendency of sector rotation is still in mending which will add fuel to the bull market.

Sector Rank Spread Breaks Downtrend

The Sector Rank Spread saw a big jump last week and the downtrend is broken. This positive development is encouraging as it improves the tendency of sector rotation which adds fuel to the bull market.

Sector Rank Spread Recovered a Bit but Still In Down Trend

The Sector Rank Spread recovered a little bit last week. But as it failed to make a higher high, the down trend is intact. A positive sign is that the latest downdraft seen the week before last week is of less magnitude than that of previous ones. As this week's move revert to the upside, SRS may start to bottom out. If succeeds, it will add more fuel to this bull market and benefit all investors.

Sector Rank Spread Shrank and Down Trend Confirmed

The Sector Rank Spread shrank again last week. As it made a new low, technically a down trend is confirmed. This, together with the sharp drop of BMI, is alarming because smaller spread indicates less tendency of sector rotation and thus less fuel to the bull market.

Sector Rank Spread Expanded But A Potential Down Trend

The Sector Rank Spread expanded last week but it may have formed a down trend. Diminishing SRS indicates less tendency of sector rotation and thus less fuel to the bull market. Cautions are recommended.

Sector Rank Spread Shrank Last Week

The Sector Rank Spread shrank last week, indicating less tendency for sector rotation and less fuel to the rally. Admittedly this conflicts with BMI's positive divergence. Because BMI has longer track record, I am still bullish right now. Nonetheless, a shrinking spread is a warning sign and suggests caution down the road.

Sector Rank Spread Expanded Last Week

Previously I talked about that Sector Rank Spread indicates the tendency of money rotating among sectors, which will add fuels to the bull market. SRS expanded a little bit last week. Together with the surprising resilient employment number it implies that this bull market may still have legs.