Industrials retraced gains in March, but the XLI sits at an oversold level within the context of a bullish intermediate-term price structure. We bet on stronger trends rather than weaker ones generally and our process favors Industrials in April.
The Discretionary sector grades out the worst in our Elev8 Model framework. Inflation risk continues to pressure a consumer already dealing with high prices and a cooling labor market.
Staples were showing signs of bullish reversal before index level turbulence escalated in March. We think the sector is positioned constructively for April.
Healthcare remains a bifurcated sector with strength in drug stocks (Pharma, Biotech) and weakness everywhere else. We like other traditional low vol. sectors better for managing market level turbulence in the near-term.
Financials firmed to end March, but we see continued inflationary pressures as an obstacle to credit markets and asset managers in the near-term.
Software stocks are seeing some bottom-fishing, but the AI infrastructure trade is starting to lose momentum which puts the sector on uncertain footing entering April.
Headwinds to both economic growth and Growth stocks remain in place. We think heavy Mega cap. exposure is likely to stunt the sector’s performance in April.
Utilities finished March with a bid, and we expect it will carry over to April as equities have come under pressure.
Real Estate stocks have remained somewhat challenged, but we think they may be a decent haven for April as the sector enters the month unloved and under-owned.
March 31, 2026 S&P futures up 0.8% Tuesday morning after a mostly weaker Monday session, with momentum and small caps under pressure. Memory names led
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