Market Bottom Analysis by Sector

Assessing the downturn

Yesterday, we took a look at five major stock indices to assess the current downturn. However, those stock indices are going to have a pretty high amount of correlation.

If we look at the underlying sectors of the market instead of the broad indices, we can see more performance discrepancy:

One surprise here is that communication was the first sector to top out way back in September. Then came discretionary and then technology. And, those are the three hardest hit sectors.

What I don’t see yet is any sign of a sustained comeback. Many of these sectors have just bottomed out recently and are barely up. So, even a small dip further could put us in a new market bottom. Let’s just hope we don’t see one of those new record lows!