GoNoGo Co-Founders Alex Cole and Tyler Wood, CMT provide you with a weekly market review and trend analysis, focusing on the bull market in the S&P.

After a volatility tsunami in early August as carry trades unwound in Japan, the S&P 500 (SPY) is showing resilience. Go Trend conditions for the US Equity benchmark index have resumed, and price action climbed back to prior all-time highs.

Rotation of leadership away from technology (XLK), discretionary (XLY) and communications (XLC) and into cyclical sectors has offered tremendous opportunity for tactical investors. Some defensive positioning from Utilities and Consumer Staples has also outperformed the benchmark. Tailwinds from a weakening US Dollar index (UUP), oil prices (USO) and US Treasury rates ($TNX), have helped attract investors to risk assets broadly.

Analyzing the GoNoGo Sector Relmap, the Financials (XLF) and Energy (XLE) continue to shine on strong blue Go trends of relative strength leadership. Stepping down to the industry groups within these two sectors, pipelines are leading the energy sector and both Financial Administration $DJUSFA and Specialty Finance $DJUSSP are showing the greatest relative strength within the financials sector.