Excerpt from Yahoo Finance quoting DataTrek’s Nick Colas:
…. “There is an important market indicator that is back near its December 2018 level, the month when the S&P 500 (^GSPC) was on the brink of entering bear market territory, falling 19.8% from its September 2018 peak.
“Recent U.S. equity market volatility has shoved sector correlations back towards the highs of the late 2018 selloff,” wrote Nick Colas, co-founder of DataTrek Research in a note to clients.
According to Colas’s analysis, the average S&P 500 sector price correlation to the broader S&P 500 index stands at 0.79 over the past month. This is the largest reading since the 0.88 level in mid-January. That was when the S&P 500 stood at roughly 2,610, still reeling from the December selloff”….
Read the full article here on Yahoo Finance!