State Street Sector – Exchange Traded Funds (ETF) divide the S&P 500 (SPX) into eleven sectors. Most of the SPX sectors are in bear trends. During the week of 10/12/26 to 10/16/26 only two sectors managed to reach all-time highs. In the week of10/19/26 to 10/23/26 three sectors reached all-time highs. Could this be the start of a multi-month U.S. stock rally or just a multi-day bullish climax?
The daily charts of the Energy sector (XLE), Consumer Staples sector (XLP), and Health Care sector (XLV) courtesy of Trading View examine their relationship.
The 10/18/26 blog “New U.S. Stock Market Leaders?” illustrated that only XLE and XLV were able to make new all-time highs. Last week they were joined by the Consumer Staples sector. The stock bulls are gaining strength.
On the bearish side of the coin, the Technology sector (XLK) made on new decline low off its all-time high reached on 10/06/26. The 10/18/26 blog noted “For most of 2026- XLK was the main force behind the U.S. stock bull market”. From March to October 2026 – XLK had an incredible 60% gain! It’s unlikely the broader U.S. stock market could have a multi-month rally without a significant upside move in Technology stocks.
On 10/28/26 the U.S. – FOMC makes its decision on short-term interest rates, the announcement could trigger a multi-month movement for U.S. stocks in either direction.
Watch XLK for a confirming bullish signal, this sector would need to end the week of 10/26/26 to 10/30/26 up from the prior week.
