No Break Outs For These Sectors

The market staged a massive break out since October 2019. The main three market indices — S&P500, Nasdaq and Dow Jones — have been rising for the last several months reaching new all time highs on a consistent basis. Yet, a lot of sector ETFs failed to reach pre-2018 correction highs forming bearish divergence between these sectors and S&P500.

Before reviewing divergences between S&P500 and individual sectors / markets, let us review the multi-months bearish divergence between S&P500 and VIX: while S&P500 continued moving higher, the VIX has not been confirming this move with its lower lows (see chart below).

SPX and VIX, Monthly

Here are the sectors / markets that diverged from S&P500. Some have been diverging for many years while others diverged just recently.


SPX and XME, Monthly


SPX and XLE, Monthly

Emerging Markets

SPX and EEM, Monthly

Small Caps

SPX and IWM, Monthly


SPX and XBI, Monthly


SPX and XRT, Monthly


SPX and XLB, Monthly

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