"Owning leadership remains important, and while it may not feel like it, Technology (both equally-weighted and cap-weighted) is still the best sector YTD and sports the highest % of stocks in uptrends."
—Strategas Technical Strategy, 4/18/18
In yesterday's Charts of the Week report, in which we gave a number of individual stock ideas, we mentioned that one of the reasons we're confident that this year's lows will not be retested is that we're seeing much better strength across the broad market. It may not feel like it, but things are actually looking pretty good right now: all of the S&P 500 sectors were positive for the month of April coming into yesterday's session; two-thirds of NYSE stocks are currently above their 50-day moving averages; and the NYSE Common Stock Only Advance-Decline line is back to making new all-time highs. There is still some obvious disparity across the various areas of the market, though, and, because of this we think it's important to continue to actively rotate into the industries and stocks leading the way.
