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Yuriy Matso observes that only two sector ETFs are currently outperforming SPY, indicating weak market breadth.
He adds that the majority of sectors lag behind the broader market, suggesting a lack of widespread strength across the market.
Matso previously highlighted renewed divergence between the S&P 500 and the percentage of its stocks above the 200-day moving average. In a separate update, he reported a sharp drop in VIX term structure, suggesting market optimism. These observations come as sector performance remains narrow relative to the broader index.