Click here for the Weekly Wrap by Briefing.com.
Bottom Line: The S&P 500 declined for a second straight week, its first back-to-back weekly decline since October. Considering the steep rise in energy prices and some earnings disappointments, last week's minimal declines were a positive. As well, small-caps bounced back from recent losses, the advance/decline line improved and interest rates fell. The homebuilding index hit another all-time high and this sector should continue to outperform as interest rates remain low, housing supply stays relatively low by historic standards and demand remains strong. The oil service index has been in a trading range for almost four months and will likely continue to underperform as crude prices fall further over the next few months. On the negative side, the transportation index has now declined 6.36% from its all-time high on 12/28. This is a concern, but is likely just a correction from recent outsized gains. Finally, most measures of investor anxiety fell on the week and likely remain too low for a durable bottom.
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