Relative Strength Analysis and Changing Market Leadership

The current bull market, which started in March 2020, is beginning another leg up, but the market leadership has changed slightly. The discretionary sectors are now doing better than the defensive sectors. Small caps and transports are getting to the market leadership position. It behooves to change the portfolio mix, and it is time to get overweight on the leading sectors and underweight on the lagging sectors.

Morning Notes – Wednesday, November 3, 2021

Directional Bias For The Day: S&P Futures are a bit lower at 7:30 AM; moving sideways to down since 11:00 AM on Tuesday The odds are for a sideways day until the FOMC statement at 2:00 PM; elevated volatility afterward – watch for a break above 4627.00 and a break below 4615.25 for clarity Key…