Sector Relative Strength Report — October 5, 2020

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Last week's late price volatility expressed itself in sector rotation terms as Healthcare, and to a lesser degree Communications Services, gaining at the expense of Information Technology.

The bigger story, not clearly expressed due to already very weak relative strength, is Financials.  The sector index broke its short-term uptrend and is now testing that trendline as resistance instead of support.  If it fails to recover that trendline, it likely falls to a lower supply/demand level before staging a recovery.  Please see our note for details.