MarketWatch: “S&P 500 sector correlations are low, a welcome sign for 2023 bull market, says DataTrek”

Excerpt from MarketWatch quoting DataTrek co-founder Nick Colas:

.... "U.S. stocks remain in a strong bull market despite recent choppiness, as the correlations between 11 S&P 500 sectors and the major index are sending some positive signs, according to DataTrek Research. 

The S&P 500’s sector correlations to the large-cap index have been below the average since mid-April, which means investors are more focused on fundamentals than macroeconomic forces as they try to outperform by picking what they hope will be winning sectors and stocks in a bull market, said Nicholas Colas, co-founder of DataTrek Research. 

“… by this measure U.S. large caps remain in good shape,” wrote Colas in a Tuesday note. “Investors are still focused on fundamentals rather than macro issues, which is the way it should be. Yes, stocks got ahead of themselves at the end of July and likely still need some time before they turn higher again, but the correlation data says we remain in a longer-term bull market"....

Full article here on MarketWatch.