Market Moves

The U.S. stock market averages closed higher today, with large-cap stocks outpacing most other asset classes including small-cap stocks. This kind of move has become so common over the past few months that investors appear to be considering it the new normal. The Volatility Index (VIX) inched lower, although still maintaining its subtly divergent action mentioned 澳洲幸运5官方开奖结果体彩网:yesterday. Meanwhile, a wide variety of sectors and assets have begun to p꧙articipate in the overall ra𝕴lly.

The chart below displays one asset class that has not frequented headlines in recent years, that of 澳洲幸运5官方开奖结果体彩网:emerging markets equities. This weekly chart compares iShares' Emerging Markets ETF (EEM) with the S&P 500 index (SPX) over the past three years. The price action appears to have discontinued its downward trend and may soon achieve a new high, thus establishing an upward trend. Even so, it appears to have quite a ways to go to catch up to the U.S. stock ind♚ex. 

Commercial Real Estate Sector Surges

Among the sectors that began to show 澳洲幸运5官方开奖结果体彩网:relative strength this week, the commercial real estate sector stands out. This sector had begun to lag behind the market since 𝔉early November, but its moves o❀ver the past three days suggest that it may not remain that way for much longer. 

The chart below shows how State Street's SPDR S&P Real Estate ETF (XLRE) has more than doubled the S&P 500 performance over the past few trading sessions. With interest rates expected to remain firm for 2020, investors and landlords can plan on enjoying historically low rates on their rental inventorඣy for another y🍎ear. 

The importance of this price action is less about the real estate sector and more the need for astute chart watchers to recognize just how broad the current asset-based rally is. It is almost as if the market is marching to a mantra of "no sector left behind." Investors keep finding new ways to display their preference for seeking investment opportunity and telegraph their bullish bias.

American Tower Shares Break Recent Pattern

The largest single holding within State Street's Real Estate sector fund is American Tower Corporation (AMT). The company recently redeemed all of its senior notes and increased its quarterly dividend from 94 cents per share to $1.01. Investors noticed the moves and sent the stock 10% higher over the past three trading sessions. The chart below shows how this move created a dramatic breakout in the counter-trend flag pattern that had been building o꧙ver the past three months, suggesting new buying enthusiasm for the shares.

The Bottom Line

Stocks moved to his💮toric highs, yet again, and this time large caps outpaced small cap and tech stocks. The Volatility Index (VIX) doggedly resists making new lows, however. Emerging markets and the commercial real estate sector both showed recent strength, suggesting that the current market rally is gaining in brea✤dth.

Enjoy this article? Get more by  for the Chart Advisor newsletter.