Image Source: PixabayIn this weekly market review, we will take a look at the various asset classes, sectors, equity categories, and exchange-traded funds that moved the market higher, as well as the market segments that defied the trend by moving lower. Identifying the winners and losers allows us to see the direction of significant money flows and their origin.
The S&P 500 Had a Strong Week
For the week, the S&P 500 was up 5.9%. After five consecutive up days, we are now just 5.0% below the 2023 high water mark, which was set on July 31. We are 9.1% below the all-time high, which was set on Jan. 2, 2022.
A Look at Monthly Returns
This next chart shows the monthly returns for the past year. November has been off to a strong start, after the market lost ground in August, September, and October.
Image Source: ZenInvestor
The Bull Market is Still Below the Long-Term Trend Line
This next chart highlights the 21.8% gain in the S&P 500 from the October 2022 low through Friday’s close. We made considerable progress last week, but the market still remains below the long-term trend line.
Image Source: ZenInvestor
The Golden Cross
The market entered a ‘Golden Cross’ configuration (a Golden Cross occurs when the 50-day moving average crosses above the 200-day moving average) on Feb. 2, 2023. The spread between these two moving averages continues to narrow. Today, it stands at 2.3%, which matches the long-term average.
Image Source: ZenInvestor
Major Asset Class Performance
Here is a look at the performance of the major asset classes, sorted by last week’s returns. I included the year-to-date returns as well as the returns seen since the Oct. 12, 2022 low for additional context.The best performing asset class last week was Blockchain, as Bitcoin continues gain upward momentum. Small-caps did well, as investors sought bargains among the asset classes that have lagged this year. The worst performing asset class last week was Volatility. The CBOE VIX index fell 30% on the week.
Image Source: ZenInvestor
Equity Sector Performance
For this report, I use the expanded sectors as published by Zacks. They use 16 sectors rather than the standard 11. This gives us added granularity as we survey the winners and losers.Construction stocks and REITs experienced a very good week, as mortgage rates cooled a bit from their recent run-up. Meanwhile, energy stocks lagged behind as oil prices gave back some of their recent gains.
Image Source: ZenInvestor
Equity Group Performance
For the groups, I separate the stocks in the S&P 1500 Composite Index by shared characteristics like growth, value, size, cyclical, defensive, and domestic vs. foreign.All of the equity groups gained ground last week. The best performing group was small-cap stocks. Market participation has broadened once again, which is a healthy sign for the market.
Image Source: ZenInvestor
The S&P 500 Top 7
Here is a look at the seven mega-cap stocks that have been leading the market all year. Microsoft held up the best, while Tesla and Nvidia led the way down.These seven stocks account for 81% of the total year-to-date gain in the S&P 500. That’s down from 87% just two weeks ago, providing evidence that participation in the bull market is broadening once again. 
Image Source: ZenInvestor
The 10 Best Performing ETFs from Last Week
Cathie Wood, the brain behind the ultra-high beta ARK funds, had a very good week, capturing the top three spots on the ETF leader board.
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The 10 Worst Performing ETFs from Last Week
Oil gave back some recent gains, and managed futures were caught leaning short into a rising market.
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The 10 Best Performing Stocks from Last Week
Here are the 10 best performing stocks in the S&P 1500 last week. 8×8 surged 46% after Craig-Hallum upgraded it following Q2 earnings beat.
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The 10 Worst Performing Stocks from Last Week
Here are the 10 worst performing stocks in the S&P 1500 last week. Paycom’s Q3 results came in weaker than Wall Street anticipated. The company’s guidance for Q4 and next year also disappointed investors.
Image Source: ZenInvestor
Final Thoughts
The S&P Top 7 stocks continued to dominate the market. As the following chart shows, these seven mega-cap tech stocks account for 81% of the S&P 500 year-to-date gain. 
Since the recent market peak on July 31, the S&P 500 is down 5.0% and the Top 7 cohort is down by 6.4%. After several weeks of narrowing market participation, it now looks like leadership is beginning to broaden again. This can be seen in the performance of small- and mid-cap stocks, which have recently been outperforming large-caps.As this market pullback continues to play out, I will be paying close attention to what’s happening with the Top 7. For now, at least, they still call the tune.More By This Author:The One-Minute Market Report – Sunday, Oct. 22The One-Minute Market Report – Saturday, Oct. 7The One-Minute Market Report – Saturday, Sept. 23
