The market is flashing signs that it might want to breakout to the upside, and Sabrient’s SectorCast-ETF model seems to be projecting that it just might do it. This unbiased, value-oriented, quantitative model continues to favor sectors that are more dependent on economic growth, like Financials, InfoTech and Energy, which remain comfortably above the more defensive sectors like Utilities, Consumer Staples, and Telecom.
There’s a whole lot of flip-flopping going on in the market right now. Today it went nowhere on no news at all, but if you’d told me the economic indicators for last week were going to report bad-to-not-so-bad numbers and corporate earnings would be split between disappointing and just okay, I would have said that the market would tank.