One of the constant aspects of markets is that they rotate. Sectors often take “turns” in who gets to lead the market for a stretch. This is a constant feature of bull markets…as one area gets stretched, another takes the lead and upward and onward the market goes during the bullish stretch.

We have not seen much rotation in 2023. We have seen a handful of growth names dominate. This has been the story of 2023 to this point.

Over the last few months, we have seen a bit more participation. You can view this through the equal weight chart below as the market rally has broadened. In yesterday’s selloff, there wasn’t a lot of fear as more sectors were in the green than in the red.

Signs of rotation is something experienced traders are always looking for. Matt and Mark will talk more about this on the Trading Justice podcast this weekend and what clues the market might be trying to tell us as we end the week. Have a great weekend everyone!

Chart of the Day: Equal Weighted S&P 500 (RSP)

There is no better sign of the increased participation in the market rally than the equal weighted S&P 500. After essentially doing nothing all year, it started picking up steam in June and even on a market sell day like yesterday barely budged.

Today’s line up

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