ROTATION FROM 'GROWTH' TO 'DEFENSIVE' OVER LAST 10 DAYS
CHART DISPLAYS LAST 30 DAYS
Utilities (
XLU) outperforming the broader market as represented by (
SPY) and growth oriented, tech based, sub-sector (
XLK) over the last 30 days.
This has a correlation with an increased 'potential' for instances of heightened, near term (2 to 4 weeks) market volatility.
During the recent selloff we can see that the 'bids' did not push the broader market as represented by (SPY) or the S&P 500 tech sector (XLK) back over its pre-selloff top. On the other hand, the market did buy the utilities (XLU) back up over its respective, pre-selloff top. (see yellow horizontal lines)
So utilities stay bid while tech and the broader market begin to falter. In my opinion this is what a rotation out of 'growth' (XLK) from the last 6 weeks and into 'defensives'(XLU) looks like from a price structure perspective. I would interpret this as an expression of 'risk off' market sentiment going into 2023. (NOT FINANCIAL ADVICE)
Utilities (
XLU) outperforming the broader market as represented by (SPY) and growth oriented, tech based, sub-sector (XLK) over the last 30 days. This has a correlation with an increased 'potential' for instances of heightened, near term (2 to 4 weeks) market volatility.
During the recent selloff we can see that the 'bids' did not push the broader market as represented by (
SPY) or the S&P 500 tech sector (XLK) back over its pre-selloff top. On the other hand, the market did buy the utilities (XLU) back up over its respective, pre-selloff top. (see yellow horizontal lines) So utilities stay bid while tech and the broader market begin to falter. In my opinion this is what a rotation out of 'growth' (
XLK) from the last 6 weeks and into 'defensives'(XLU) looks like from a price structure perspective. I would interpret this as an expression of 'risk off' market sentiment going into 2023. (NOT FINANCIAL ADVICE) 
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