THE WEEK AHEAD: Starting 3/20/23
Going It Alone: The Nasdaq's relative strength is eye-opening against the major benchmarks, which in itself is a good thing, but can it really do all the heavy lifting? Below one can see the sizable differences as it is now higher by double digits again YTD after a powerful last week rallying more than 4%. The tech-heavy index is the only one of the quartet above its January highs, and the Russell 2000 and Dow Jones Industrials are now negative for 2023. The latter of course is outdated with just 4 of the 30 names in the PRICE weighted average true industrial names in BA CAT HON and MMM. Many will say that the "rolling" bull market is healthy as different sectors take their turn demonstrating leadership, (not too long ago we were speaking about just how firm the industrials were acting). Currently, nothing is "rolling" anymore, and in fact, on a one-month look back period the XLK is the only one of the major 11 S&P sectors in the green. This to me speaks of others needing to pitch in, because eventually, they come for all the groups. Tech is giving others a chance to catch their breath. Will they take that opportunity and recharge?