The cyclical rally has taken a pause over the past several trading days and recent economic data hasn’t necessarily been supportive. Lumber is certainly signaling that the good times are back. Treasuries are finally starting to capitulate a little in the face of the current stock rally.

Energy stocks continue to roar back as the holiday travel season has shown us that many people aren’t afraid to hit the roads and airports. Small-cap and cyclical outperformance is exactly the type of intermarket activity you want to see in an economic recovery scenario. Tech stocks continue to underperform for the most extended stretch since late 2018.

Tech stocks are below their short-term moving average for the first time in well over a year. Communication services stocks managed to slightly outperform the broader market last week, but it could be a temporary bounce. The healthcare sector has largely failed to see any meaningful gains from the COVID vaccine trade.