Three Sectors Are Holding Up the Entire Market

Don here...

The S&P 500 has gone nowhere.

Jeff Bierman overlaid the five largest sector ETFs on a single chart this morning and the picture told the whole story.

Retail, industrials, and healthcare are carrying the market higher. Technology and financials are underperforming.

Those three leaders make up roughly 25% of the index. Technology alone is over 30%.

A 25% tail is wagging a 30% dog. When those sectors give way, there is nothing underneath to catch the fall.

In today's free session replay, you'll discover:

Why the S&P 500 is running on borrowed time. The market keeps repeating the same range while bearish divergences build underneath. The hourly MACD and RSI print lower highs and lower lows even as price holds steady.
The consumer spending shift that tells you what to own. US retail sales stalled to close the holiday season. The top 10% drive 90% of spending. That is why Lululemon climbs while Coca-Cola gets crushed on a 3.5% revenue miss.
China's campaign to push the world away from US Treasuries. They are urging banks across Canada, Europe, and South America to reduce exposure. If yields push through the 5% handle, stocks face an allocation shift into bonds.
The earnings lesson two stocks taught this morning. Spotify jumped $68 after being cut in half. Coca-Cola beat by two pennies and got sold. Deeply oversold stocks with lowered expectations bounce. Overvalued stocks with weak growth get punished.

Jeff is up 2% today on a flat market. He is running six shorts and eight longs.

He shorts individual stocks within the weakest sectors. He buys at 52-week lows in the strongest ones.

The key takeaway is patience. Jeff waited five weeks for the Coca-Cola trade and hit it the morning after earnings.

→ Watch Jeff explain why three sectors control the entire market and how to spot the moment leadership breaks down

To your success,

Don Kaufman
Chief Market Strategist, TheoTRADE

P.S. While Jeff watches sector rotation and bearish divergences, Blake Young watches something simpler: Dark Wire beacons that fire at 3AM showing institutional positioning before the opening bell. He doesn't wait five weeks for setups—he scans overnight signals, trades two hours, done. January: 18.5%. Tomorrow 2PM ET, see how the overnight edge works.

👉 Register for Dark Wire here

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