Index Looks Fine. Leadership Underneath It Is Getting SmallerS&P 500SP_DLY:SPXTradeSentinelNotesSPY still looks healthy. But the relative-strength table is telling a more selective story. Where is capital actually flowing? The clearest leaders are now: Software. Energy. Healthcare. IGV/SPY is one of the cleanest rows on the board. XLE remains strong. XLV continues to outperform. Technology remains structurally healthy, but Semiconductors are lagging badly. Some lines on breadth Equal-weight and small caps have weakened versus SPY — the broadening signal has faded. RSP/SPY has deteriorated. IWM/SPY is weak across most horizons. QQQE still looks better than QQQ, but its short-term relative momentum has also softened. What matters Watch: IGV + XLE + XLV and then ask whether: RSP + QQQE + IWM can recover. That is where the next breadth signal will come from. What is mostly noise A sector being green in absolute terms. The key question remains: Is it actually beating SPY? Industrials are a good example: the longer trend still survives in absolute terms, but XLI/SPY is deeply weak. TradeSentinel Takeaway The market has moved from: “leadership broadening” toward: “leadership narrowing again.” That matches the Market Pressure deterioration: fewer stocks above SMA20 Nasdaq new lows expanding small caps underperforming equal-weight losing relative strength Yet the primary SPY structure remains intact. Stay with the few areas still being rewarded — and watch whether breadth repairs before the weakness spreads into long-term structure. --------------- Core longs to lean into IGV — Software Cleanest combined absolute + relative setup. XLE — Energy Still strong across absolute and relative structures. XLV — Healthcare Strong absolute and relative confirmation. XLK — Technology selectively Prefer stronger sub-groups and individual names rather than blanket exposure. Areas to watch for rotation XLF relative price has improved before all trend slopes have flipped potentially an early leadership transition XLC short-term relative improvement, but long-term damage remains Areas losing confirmation RSP equal-weight relative weakness is a warning for breadth QQQE still structurally better than QQQ, but short-term confirmation has weakened IWM / RUT clear relative underperformance broadening thesis needs repair here SOXX semiconductor weakness persists Avoid / de-emphasize XLI XLRE XLU XLP XLY These currently provide poor relative opportunity versus simply owning SPY.