What is the internal market telling us?

As you can see in the following chart, the internal nature of the stock market has been in correction since September of last year when the market was in its least dysfunctional condition.    In recent weeks, the nature of that correction has been up and down, but still, if you were not in Energy stocks, you have underperformed. 

Currently, there is a certain amount of fragmentation present based on market cap.  For instance, the large-cap Energy stocks are a good bit stronger than their mid-cap cousins.  And the same is true for Consumer Discretion stocks.  But on the other side of the aisle, the mid-cap Consumer Staples are stronger.

But when you put them all together, as seen in the chart above, there is definitely an internal correction going on. 

To view today's complete Weekly Sector Report, click here.

Don Hays, Nicholas Warf and Justin Wood

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