The market’s been a hot mess this past month. Failed breakouts are piling up, with prices slipping back into their ranges and falling below key overhead supply zones.
Beneath the surface, the average drawdown for S&P 500 stocks stands at 18.2%, and the weakness is spreading across major sectors and industry group indexes.
It began with lagging areas like metals and mining, which have already rolled over, and now, groups such as banks are breaking below their prior cycle highs.
Let’s break down the choppy action and highlight the struggles across various groups to hold their breakouts.
Let’s start with the Equal-Weight Consumer Discretionary $RSPD:
One of the most important sectors is threatening to return to the range.