REITS attractive given relative breakout vs SPX

Key Takeaways

  • Monday’s rally has reached SPX, QQQ targets and right below 200-day moving average
  • Defensive groups like Utilities and REITS fared far better performance wise than Financials or Industrials
  • REITS broke out to multi-week highs Monday, a development which should help relative performance continue to improve  

The US Equity rally continued without any hint of reversals taking place, though SPX is now nearing its key make-or-break levels just under 4600 while QQQ reached its 50% retracement zone just under its flat 200-day moving average.  Given the pickup in Defensive trading lately (Both Utilities and REITS up more than +0.70% Monday, while Financials were negative and Industrials up just fractionally) it will pay to continue to advocate a defensive stance, expecting prices to hit resistance over the next week and reverse course.  At present, 4600 will act as the key line in the sand for SPX, while QQQ has resistance now at 369-370. 

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