Consumer discretionary stocks outperforming staples hint at a bullish trend taking shape.Unlock access to InvestingPro’s AI-selected stock winners for under $9 a month!
Similarly, it bottomed in December 2022, two months before the broader market confirmed the start of a new bull cycle.A decisive break above the 2.5 resistance level would be a strong bullish signal, indicating investors are willing to take on more risk. If this ratio hits a new high, it would confirm continued bullish momentum.These spreads reflect the risk premium investors demand for holding debt from less stable companies.
In the weeks ahead, it will be crucial to watch whether the high-beta stocks vs low volatility stocks ratio regains momentum. If the ratio starts climbing again, it could reaffirm a short-term bullish outlook.
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