Utiliities Up 1%, SP500 Down 1%, Tech and Basics Down 1.5%

Today is a day when it is evident the late cyclicals are outperforming the early cyclicals. A sector rotation out of early cyclicals and into late cyclicals such as Utilities has become more evident since mid-Feb.

The chart in the left frame shows utilities outperforming the SP500 since Feb 18 and the upturn in the 13 wk lower volatility band suggests that for the near to intermediate term, utilities are apt to outperform the SP500.

The chart in the right frame shows tech underperforming the SP500 since November 8 2010 and the violation of the 13 week lower volatility band puts tech on a clear sell signal against the SP500 providing a strong indication that tech is going to underperform the SP500 over the near to intermediate term.