The composition of the top five sectors remains unchanged this week, despite an interrupted trading week. This stability comes against a backdrop of mixed signals and potential defensive rotation in the broader market. Let’s dive into the details and see how these sectors are holding up. XLY, Consumer Discretionary XLC, Communication Services XLF, Financials XLK, Information Technology XLI, Industrials Performance-wise, our equal-weight portfolio of these sectors is down 0.66% against SPY, which itself is down 0.44%. (Note: This analysis is based on data about an hour before market close on Friday, January 10th. Any significant shifts after this time will be addressed in a weekend update if necessary.) Sector-by-Sector Analysis Consumer Discretionary: Strong Despite Decline Consumer Discretionary remains well above its breakout level, which took out the peak of 2021. As a result, the sector has some room to decline — say, back to the support area around 210 —…
