SPHB - SPHB: High Beta Underperforming The Low Vol Factor Near-Term Risks

2024-02-01 13:34:58 ET

Summary

• Stocks have rallied since October 27, but one indicator suggests the recovery may be on shaky ground.
• Invesco S&P 500® High Beta ETF has technical risks and a high allocation to the Information Technology sector.
• The chart for the SPHB ETF shows possible problems for the bulls, with resistance at previous all-time highs and potential for a pullback.
• I highlight key price levels to watch as Q1 presses on.

Is the rally in jeopardy? Stocks are up big from their October 27 low, with small caps and Real Estate still posting strong gains despite a January dip. The recovery may be on a shaky foundation, though, at least according to one indicator. JC Parets pointed out that the S&P 500 (SP500) has been making new highs but the ratio of high-beta stocks to low-volatility equities failed to confirm those highs. That is a concerning trend heading into what can be a dicey stretch on the calendar through mid to late March. ...

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