Key Points:
- Even with relationships at extremes (U.S. with a large lead over international benchmarks), there have been no major changes or reversions yet. U.S. large caps are taking back the lead from small caps. One issue is that there are seven distribution days on the NDQC, but it is holding strong above its 50-DMA.
- U.S. sectors are similar, with Retail still at an historically extreme level of outperformance versus the S&P 500 and the laggard sector, Staples.
- Of international markets, Japan, Norway, France, Italy, and Korea/Taiwan have more actionable names now, while India has dropped from leadership.
