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 500âs shift from green to redâsignaling weakening relative strength.
Weâve 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 wouldnât be surprisingâmany 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 domestic markets. A key indicator we often evaluate are insider transactions - there are a few that are standing out to us right now.
Steve and Alfonso will break down whoâs buying, what they know, and whether they actually made a smart move. Plus, Steve reveals the one trade heâs taking himself.
