The technical analyst cautions investors to take headlines about new all-time market highs with a grain of salt.
“There are weak sectors within the market, and there are some really strong ones,” Parets noted. “The bulls want to see some rotation out of the defensives and into the sectors that have been struggling if this market is going to keep grinding higher. The bears want to see follow through from the struggling ones and have the leaders play catch-up to the downside.” [Healthcare ETFs in Massive Rally on Defense Trade, J&J]
Utilities Select Sector SPDR
Full disclosure: Tom Lydon’s clients own SPY.