A Rare Split Between Cyclical Leaders 🌤️ The Morning Print
Good morning!
Today we're examining the divergence between broker dealers and the Industrials sector.
Both groups act as bellwethers for economic activity, so this is an important development to monitor.
Let's take a closer look.
These two have moved largely in lockstep since the beginning of this cycle.
Lately, however, broker dealers have decoupled.
This can largely be attributed to recent weakness in the financial sector.
On the other hand, industrials have continued climbing to new all-time highs.
While they represent different industries, both are closely tied to the economic cycle.
Alongside Technology, broker-dealers and industrials serve as key barometers of overall market health.
A sustained divergence between these groups is worth noting, and if broker dealers continue to lag, it could be an early signal of broader market caution.
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