SPY Still Seems Fine. Almost Everything(!) Else Has to Beat It.S&P 500SP_DLY:SPXTradeSentinelNotesThe absolute market remains structurally healthy. But the relative-strength table now gives a much narrower message. Where is capital actually flowing? The clearest leadership is: Energy Financials Technology Software Healthcare XLE/SPY remains strong. XLF/SPY has materially improved and is now close to full relative leadership. IGV remains one of the cleanest structures in Technology. One line on breadth Equal weight and small caps are losing ground while SPY holds near its highs. RSP/SPY is weak. RUT/SPY and IWM/SPY are weak. QQQE has also lost short-term relative momentum. That fits the deterioration we're seeing in market breadth. What matters Watch whether: RSP + QQQE + IWM begin reclaiming their relative short-term trends. Those are now the clearest indicators of whether participation is repairing. What is mostly noise A sector going up in absolute terms. In this environment the real hurdle is: Can it outperform SPY? Industrials, Real Estate and several consumer groups currently cannot. TradeSentinel Takeaway The market has moved from: broad participation to broadening and now toward concentrated leadership. The good news is that leadership still exists — XLE, XLF, XLK, IGV and XLV. The warning is that fewer parts of the market are participating with them. Lean into: XLE, XLF, IGV, selective XLK, XLV Breadth repair watch: RSP, QQQE, IWM/RUT Needs repair: SOXX Avoid / lagging: XLI, XLRE, XLU, XLP, XLY The next important signal isn't whether SPY makes another high. It's whether the rest of the market starts catching up again.