From Bespoke Investment Group:
Each week in our Sector Snapshots report, one of the topics we cover is the performance of individual sectors relative to the S&P 500. Looking at relative strength helps to show which sectors are outperforming and leading the market, which sectors are underperforming and lagging the market, as well as other relationships between sectors. One notable trend in this week's relative strength charts was the divergence between the Consumer Discretionary and Energy sectors. As shown in the chart below, just as the relative strength of Energy began to fall off a cliff, Consumer Discretionary stocks took off.
Looking at the above chart, it seems completely reasonable to think that what would be bad for the Energy sector (lower energy prices) would be good for the consumer. Looking at a longer term chart, however, shows that this has not always been the case....MORE