The U.S. markets have rebounded after reports the White House is easing their position on tariffs.

Most importantly is that this news has provided fertile grounds to build a new rally, and with the S&P 500 back above a key level of support the bias has shifted to a more optimistic one.

While value has climbed to the top of the rankings in recent weeks, we could see growth mobilize up the ladder as we see the trends that have persisted over the last month mean revert.

In other words, the short-term outlook has improved and it's in favor of growth right now.

Yesterday, Steve Strazza and Alfonso Depablos went live to discuss the screaming hot insider transactions hitting the tape as markets rebounded.

You want to know what the best insiders are buying? Click here to see the...

The S&P 500 continues slipping in the power rankings as long-term trends shift in favor of international markets.

This transition is clear in the S&P 500’s shift from green to red—signaling weakening relative strength.

We’ve highlighted this rotation for some time.

Two key questions arise from this:

• Will international markets outperform the U.S. over the long term
• Which leads in the short term?

Last week, money rotated back into the U.S., with the S&P 500 bouncing, albeit modestly. Further, the ratio between the two bumping into this resistance zone could signal further short-term strength for U.S. equities.

A pause in the capital exodus out of the States wouldn’t be surprising—many trends, including Gold, Bitcoin, and growth stocks, appear exhausted for now.

This week, we want to be on the lookout to see if money continues its short-term rotation out of global and back into the States. If so, it could set the stage for the next few months as international digest their gains.

In that tape, we could see some catch-up trades emerge in the...

Gold...

It's the hottest asset in town and it's smoking the U.S. markets in 2025. While the S&P is down 3%, Gold is up 14% and the Gold mining companies $GDX are up double that of 28%.

While this Gold trend has now certainly deserved a pause, the longer-term outlook is still decisively bullish.

Take a look at the Gold Miners ETF $GDX, which like all the precious metal mining funds is at the top of our list today. It's in the process of breaking out of a nearly five year base.

So long as GDX is above 44, the bias is to the upside for this group.

The dominant force in equity markets right now is the record rotation out of U.S. equities and into international markets.

The biggest losers over the past month? U.S. growth stocks. And at the tail end of that risk spectrum, speculative growth—best represented by ARK Innovation (ARKK)—has taken the hardest hit, dropping 25% and failing to hold its long-term breakout.

We’re closely watching whether this broader rotation out of U.S. stocks sustains in the coming months. If capital starts flowing back into the U.S., ARKK would likely be a major beneficiary.

A successful reclaim of its breakout level would set up a bullish long-term trend—but everything hinges on the international vs. U.S. capital flows.

We broke all of this down in yesterday’s Emergency State of the Markets stream. The All Star Charts team joined the discussion, along with esteemed trader John Netto, who shared his insights on the Fed’s announcement.

...

As the U.S. markets have sold off, defensive sectors with lower volatility have done well.

Consumer Staples, Real Estate, and Utilities are all sectors with low beta that have outperformed.

Interestingly, Utilities had the perception of being a beneficiary of the AI trade last year while now they seem to have fallen back to their roots of providing a safe haven for U.S. investors.

As such, now the sector has built a longer-term base with a clean upper threshold at its prior support. If this ratio can break through the area marked below, it would point to an emerging trend favoring Utility stocks.

These types of trends don't happen often; it's only when the market is really under pressure.

The analysts at All Star Charts are hosting an emergency market update today at 2:30pm ET to break down what's happening with...

Most notably, Large Cap Value $IWD has climbed to the top of the rankings as U.S. growth has sold off.

The trend favoring value over growth is clearly intact over shorter timeframes. But what would it take for this to shift meaningfully over a longer time period?

Pictured below is the growth value ratio since 2020. While this ratio has taken a hit, it is still trading well above a key inflection point.

If this ratio were to move below 1.90, it would signal that a longer-term trend reversal is taking place in favor of value stocks.

That’s why we’re doing a State of the Markets. Join JC Parets, Steve Strazza, and more as they make sense of all this.

You can join at 2:30pm ET live by clicking here.

The same theme continues to dominate across the global markets; more money is rotating out of the United States and flowing into international markets.

As shown in above chart, the S&P 500 has now fallen into red territory while many international ETFs are trading at new highs.

Poland $EPOL, for instance, has risen to the top of the leaderboard and is up +36% YTD while the S&P 500 is down for the year.

We would encourage you to go through this list of ETFs in the above table - it's only 44 ETFs. What you'll see is a large number of country ETFs making new highs and rallying significantly in recent weeks.

While one could argue this trend is extended to the upside in the short-term, the longer-term implications of such an aggressive capital inflow into international equities is significant.

We could be at the beginning stages of outperformance from global relative to the U.S - a trend we haven't seen for 15 years.

Precious metal miners have climbed to the top of the rankings in an impressive fashion. This has been a persistent and growing trend over the last few weeks as Gold climbs to all time highs in the face of uncertainty in risk markets.

But it's not just these stocks showing relative strength. Insurance $IAK, for instance, has barely budged while U.S. stocks have aggressively sold off.

Broadly speaking, seeing rotation into these less growth-oriented industries makes sense as apart of a more defensive rotation. Insurance has exhibited less volatility, which could make it attractive for those looking for more stable equity market exposure in a volatile tape.

We can certainly see some movement on this week's thematic table as equity markets have extended their decline.

The basic summary here is that high beta and growth have dropped on the list; examples of this include the Ark speculative growth funds and crypto stocks.

In addition to this, it's to no one's surprise that low volatility stocks have climbed to green territory on the rankings. These stocks outperform during market corrections and this is another example of that.

Extending on the speculative growth theme, Chinese equities (and international equities more broadly) have been a strong area of outperformance as money has rotated out of the United States and into international equity.

However, a scenario we're considering is if we see an oversold bounce in the coming weeks whether this money flow will reverse and funds will rotate out of international as a source of funds back into the U.S.

Pictured below is China $FXI hitting a significant level of resistance; we'd be surprised to not see some level of digestion here as this theme takes a well deserved pause.

This table captures the longer-term drift in the relative performance of the U.S. sectors as markets accelerate their selloff.

You can see groups like Communications $XLC continue to show leadership, while Consumer Discretionary $XLY, which was on the top, has dramatically fallen in recent weeks.

We've been pointing to this breakout level in XLY; last week we said buyers should come in and defend this breakout.

Well, they failed, rather spectacularly...

It's not just Amazon $AMZN or Tesla $TSLA dragging this ETF lower, it's a sector-wide story right now.

The Equal Weight Consumer Discretionary ETF $RSPD also failed to break above its prior cycle highs.

Retail stocks are undoubtedly being dragged lower because of this, but retail-expert Jeff Macke knows how to turn that weakness into an opportunity.

Tomorrow, Jeff’s breaking down which retail names are still worth buying — and which ones to stay far away from....

Large Cap Growth $IWF has stepped down on the rankings as Large Cap Value $IWD has climbed to the top.

Clearly, equity markets have sold off rather aggressively in recent weeks.

The S&P 500 $SPY has made new lows and is now retesting the final level in the sand at the 161.8% Fibonacci extension level. If the S&P 500 loses 560, the risk in owning equities over longer time periods significantly rises.

The area that's been hit the hardest has been crypto. The average token is now in its second 60% drawdown of the last 12 months. And the majors are not fairing much better. 

The bottom line, according to Strazza, is the two best crypto vehicles are currently sporting all the classic characteristics of fresh downtrends. 

See how he's playing these downtrends in this conversation with JC Parets. ...

The S&P 500 (United States) has fallen into red territory in our global rankings. This marks a notable development, as under our relative strength ranking America is now in the bottom half of the world in terms of market strength.

The chart below documents the ranking of the United States over the last three months and how it's now in red territory.

The trend favoring the United States has been a persistent one over the last 15 years, and has been marked by continued (and failed) calls of its demise.

But with global stocks nearing a historic breakout, we could be seeing the beginning stages of broadening market leadership outside the United States.