Communication Services just had a brutal week.
$XLC underperformed the $SPY by 6.3 percentage points over 5 days ending Oct 27th. That's the worst relative performance since November 2022 and the 3rd worst 5-day stretch in 19 years.
Down 8 of the last 9 sessions. Total damage: -8.3%. Now sitting at June lows.
Heading for a 3rd straight weekly decline. Year-to-date: -11.6%. First annual drop since 2022 if this holds.
The sector is getting hammered and technically oversold. When something moves this hard this fast, it usually means either:
1) Something broke that investors know about
2) Tax loss selling into year-end
3) Rotation out of growth into value
Communication Services is heavy on mega-cap tech and media. If those names are weak, the whole sector bleeds. Watch for stabilization or continued capitulation.
$XLC underperformed the $SPY by 6.3 percentage points over 5 days ending Oct 27th. That's the worst relative performance since November 2022 and the 3rd worst 5-day stretch in 19 years.
Down 8 of the last 9 sessions. Total damage: -8.3%. Now sitting at June lows.
Heading for a 3rd straight weekly decline. Year-to-date: -11.6%. First annual drop since 2022 if this holds.
The sector is getting hammered and technically oversold. When something moves this hard this fast, it usually means either:
1) Something broke that investors know about
2) Tax loss selling into year-end
3) Rotation out of growth into value
Communication Services is heavy on mega-cap tech and media. If those names are weak, the whole sector bleeds. Watch for stabilization or continued capitulation.
