Most “Strong” Sectors Are UnderperformingS&P 500SP_DLY:SPXTradeSentinelNotesSPX Sector Rotation: The Market Is Broad — Leadership Isn't The headline market remains healthy. SPY, RSP, Nasdaq, equal-weight Nasdaq and small caps are all in constructive absolute trends. But relative strength tells the more useful story. 1️⃣ Where is capital actually flowing? Energy and Technology. XLE/SPY is one of the cleanest structures on the board, with relative momentum improving across several horizons. Technology also remains firmly supported, while SOXX and IGV show that semiconductors and software continue to participate. Crucially, QQQE/SPY is healthy too — Nasdaq leadership is broader than just a few mega-caps. Market breadth Absolute breadth is healthy; relative breadth is selective. Small caps are rising, but RUT/SPY and IWM/SPY have not yet completed the transition into sustained leadership. That distinction matters. 2️⃣ What matters Watch Energy + Tech leadership, and then monitor whether Financials, Healthcare and small caps can flip their relative structures bullish. That is where the next genuine broadening signal would come from. 3️⃣ What is mostly noise A sector being green in absolute terms does not automatically mean capital is rotating into it. Industrials are the best example: healthy absolute trend, weak relative structure. The benchmark matters. 4️⃣ TradeSentinel Takeaway The market remains constructive, but the best momentum hunting ground is still concentrated. ➡ Lean into: XLE, XLK, IGV, SOXX ➡ Rotation watch: XLF, XLV, IWM/RUT ➡ Relative laggards: XLC, XLI, XLP, XLRE, XLU, XLY The next important signal isn't another SPY high. It's whether small caps, Financials and Healthcare begin consistently outperforming SPY. If they do, the market moves from selective leadership toward genuine broadening. If they don't, continue concentrating screening effort where the relative-strength evidence already exists.