Sector Correlations During The Rally

Since the December 24 bottom, the Industials sector has led the 11 major S&P 500 groupings with a gain of more than 25%.

If we got back to 1928 and look at every time the S&P 500 rallied at least 10% for two months following a 52-week low, we can look at what sectors led/lagged and see how they correlate to our current rally.

When we do that, we get the following 14 rallies with the highest sector correlation.

Going forward, the S&P struggled to maintain its gains over the medium-term.