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SPDR Sector ETFs Fri 2025-04-04: 6.4 Strength Score (Weakened -0.7)

Brian Degracia

• 11 min read
SPDR Sector ETFs Fri 2025-04-04: 6.4 Strength Score (Weakened -0.7)
TARIFF TANTRUM! U.S. MARKET WEAKENED FOR THE WEEK ENDING FRIDAY 2025-04-04. No ETFs strengthened or were even just unchanged. Three weakened but not enough to change rating and 8 weakened enough to change rating. XLU/Utilities is strongest at 4Strong. XLB/Materials is weakest at 8VeryWeak.

This post consists of the following five sections:

I. Introduction
II. Weekly Returns
III. Spectrum Graph Analysis
IV. Today's Market Context
V. Detailed Sector ETF Analysis

Last Friday's ETF strength report is available here (SPDR Sector ETFs Fri 2025-03-28: 5.7 Strength Score Weakened -0.2).

I. Introduction

Background

This analysis consists of the Stock Market Organizer stock-by-stock strength analysis applied to the 500 stocks that comprise the 11 SPDR Select ETFs.

These results are combined with overall market environment readings - the Market Strength Score and the Sector Risk Gauge, which reflect "Risk Off" as of Friday, March 28, 2025 - to discern appropriate portfolio exposure and risk/position management given prevailing market and sector conditions.

Today the Market Strength Score is -99%, right at the doorstep of the -100% extreme low reading. This is the territory of extreme volatility. Proceed appropriately.
The negative and extreme Market Strength Score reflects a need to be cautious regarding new longs. This level is associated with high volatility.
This proprietary Sector Risk Gauge objectively reflects the market's underlying cross-currents which provide valuable information to enhance returns for those seeking to stack strengthening and weakening in their positions.

Why do you care?

This dynamic market analysis provides a continuously updated, apples-to-apples comparison of the strengthening and weakening trends in the US market. By tracking the 500 large-cap stocks across 11 key sectors (via SPDR ETFs), this analysis offers valuable insights for investors seeking to harness momentum in their portfolios.

Each week, the analysis clearly identifies which sectors and stocks have gained, remained flat, or lost ground. With this data, investors can objectively assess sector and stock strength, refining their timing and positioning for new investments. Ultimately, this approach aims to enhance long-term portfolio performance by leveraging momentum – a proven market factor – to inform data-driven investment decisions.

Most Important Ranking: Strengthening Status

The following Strengthening Status spectrum graph shows the ETFs based on their current strengthening status, as compared to last week.

Sector rating strengthening and weakening are important signals showing the user where material movement is happening.

These are ordered based on important distinctions - did an ETF strengthen or weaken, enough (or not) to change rating, and where in the ratings scale (aka the spectrum of possibilities) does the ETF currently lie?

This graphic clearly provides this key information at a glance.

The upper and lower portions in these graphics show the same information, presented in different manners. The purpose is to provide a clear understanding of where there is strengthening and weakening, both minor and major, in the sectors that comprise the market.

The past three weeks Strengthening Status show unchanged to weakening over the past two weeks. The upper portions show strengthening from the top row down, while the lower portions show strengthening from right to left. These graphics are set up to clearly convey which ETFs/sectors strengthened or weakened, and from/to where this happened. Though it is impossible to determine how long these signals will last (what will be), the critical point is that these are the objective strength levels of these ETFs right now (what is).

Bottom Line Translation

Each ETF/Sector is given a Bottom Line rating below on a scale of -3 (Worst) to +3 (Best) based on A) the ending strength rating of each ETF and B) the strengthening/weakening action of the ETFs during the week, with the five possibilities being 1) strengthened enough to increase rating, 2) strengthened but not enough to increase rating, 3) unchanged, 4) weakened but not enough to decrease rating, and 5) weakened enough to decrease rating.

CURRENT reading as of Friday, April 04, 2025. These summary ratings take into account the strength rating and strength action of each of the 11 ETFs for the just-completed week, on a scale of -3 (Worst) to +3 (Best). Readings for the previous two weeks are shown below.
.

II. Weekly Returns

Average Returns

The average returns for the underlying stocks in each ETF are shown below - note this is NOT the return for the ETF for this week.

The bar chart shows the AVERAGE returns for the underlying component stocks, meaning the Equal Weight Average returns. The orange markers show the actual ETF return for this period.
The average returns ranged from -16.5% (XLE/Energy) to -2.6% (XLP/Consumer Staples), with 0 positive out of 11 sectors for the week.

The best and worst are highlighted below:

Best:

  • XLP/Consumer Staples, -2.6% average for 38 stocks
  • XLU/Utilities, -4.6% average for 31 stocks
  • XLV/Health Care, -6.7% average for 61 stocks

Worst:

  • XLE/Energy, -16.5% average for 22 stocks
  • XLK/Technology, -12.8% average for 69 stocks
  • XLB/Materials, -10.5% average for 27 stocks

High and Low Returns

The following graphic overlays the lowest and highest returns in each sector.

XLP/Consumer Staples was least weak this week while XLE/Energy was the weakest. Strongest stock at +9%: XLP FOOD & BEVERAGE - Food - Major Diversified, LW/Lamb Weston Holdings Inc, started the week at 9Weakest and ended at 7Weaker. Weakest stock at -28%: XLB CHEMICALS - Chemicals - Major Diversified, CE/Celanese, started/remained at 9Weakest.

III. Spectrum Graph Analysis

This methodology uses spectrum graphs to obtain key insights unavailable elsewhere.

Spectrum graphs are a key tool in this methodology that reflect where in the spectrum of possibilities currently lies a measured entity (market, sector, industry, sub-industry, stock) between the extremes of 9Weakest to 1Strongest. This helps the user objectively gauge when and if something is at an extreme. In turn, helpful signals are provided by tracking movements within the spectrum of possibilities.

There are currently four types of spectrum graphs in this ETF analysis:

  1. By Strengthening - this is the most important graph, and it clearly shows in order the ETFs/sectors based on their strengthening/weakening performance during the week:
    - Strengthened rating (rating change is most important signal)
    - Strengthened but not enough to change rating
    - Unchanged
    - Weakened but not enough to change rating, and
    - Weakened rating (rating change is most important signal).
  2. By Type - logically groups the ETFs (for example, interest rate-sensitive, technology-related, consumer-related) for direct comparison with similar ETFs.
  3. By Strongest to Weakest
  4. Alphabetically

The remainder of this section uses types 2, 3, and 4 above to show current performance.

Context: Comparison to Recent Weeks

The following spectrum graphs by ETF Type show recent Friday week-to-week changes compared to the current week.

03/21/2025 = Weakened, 03/28/2025 = Weakened, 04/04/2025 = Weakened.

Current Status: 6.4 Composite Score, Weakened -0.7 points this week

The following spectrum graph "Strongest to Weakest" shows the composition of the ETF ratings that comprise the current composite score, in order of Strength Rating. Below that is a "play" chart (somewhat like a football play diagram) which groups the sectors on a graphic for easy review of what sectors are at what strength ratings and what was their path to arriving at these ratings. This is followed by an Alphabetical spectrum graph.

The ETFs are listed below based on their strength rating.

1Strongest
None

2VeryStrong
None

3Stronger
None

4Strong

  • XLU/Utilities (Weakened)

5Average
None

6Weak

  • XLV/Health Care (Weakened)
  • XLC/Communication (WEAKENED RATING)
  • XLF/Financial (WEAKENED RATING)
  • XLP/Consumer Staples (WEAKENED RATING)
  • XLRE/Real Estate (WEAKENED RATING)

6.4 - Composite Score

7Weaker

  • XLK/Technology (Weakened)
  • XLE/Energy (WEAKENED RATING)
  • XLI/Industrial (WEAKENED RATING)
  • XLY/Consumer Discretionary (WEAKENED RATING)

8VeryWeak

  • XLB/Materials (WEAKENED RATING)

9Weakest
None

IV. Today's Market Context

Indexes and ETFs Weekly Performance

This week's returns for four key indexes are shown along with the actual returns for the 11 ETFs for the week ending Friday, April 04, 2025.

Key Headlines

  • U.S. stocks see biggest 2-day wipeout in history as market loses $11 trillion since Inauguration Day
  • Bitcoin rises after Trump tariffs lead to worst stock-market rout in 5 years. Will the crypto end up a safe haven?
  • Oil prices are cratering on Trump’s tariffs. So why does OPEC+ think the world needs more crude?
  • Trump is calling for a Fed rate cut to rescue markets. Why he might be right.
  • Airline stocks have taken a beating — and tariffs aren’t even the biggest worry

(Marketwatch)

  • Dow drops 2,200 points Friday, S&P 500 loses 10% in 2 days as Trump’s tariff market rout deepens
  • Trump tariffs fallout: China retaliates, Vietnam talks, U.S. markets melt down
  • Tech megacaps lose $1.8 trillion in 2 days as Trump tariffs lead Nasdaq to worst week in 5 years
  • Powell sees tariffs raising inflation and says Fed will wait before further rate moves
  • China to impose 34% retaliatory tariff on all goods imported from the U.S.

(CNBC)

  • Trump tariffs spark worst weekly meltdown since 2020
  • Meta plans nearly $1 billion data center project in Wisconsin
  • Senate GOP approves framework for Trump's big bill of tax breaks and spending cuts after all-night session
  • IRS plans to cut up to 25% of staff, starting with closing its civil rights office, AP sources say
  • Powell: Inflation from Trump's tariffs 'could be more persistent'

(Yahoo!)

Key Current Readings

SP500: 5,074.08 (5,580.94 last week)
Nasdaq: 15,587.79 (17,322.99)
Nasdaq 100: 17,397.69 (19,281.4)
Russell 2000: 1,827.03 (2,023.27)
10Y Treasury: 4% (4.253%)
2YT: 3.644% (3.912%)
Oil (WTI Crude): $62.32 ($69.04)
Bitcoin:$83,400 ($84,347)
Dollar Index: 102.89 (104.01)
Gold: $3,056.1 ($3,118)
VIX: 45.31 (21.65)
(CNBC)

V. Detailed Sector ETF Analysis

The following Stock Market Organizer strengthening/weakening analysis looks at the 11 SPDR ETFs and their underlying component stocks for the just-completed week, as follows:

  1. ETFs Summaries
    1.1 Current: Component Stocks Strength Ratings (1Strongest vs. 9Weakest vs. Ignore Status)
    1.2 Current: Component Stocks Positive vs. Negative Weekly Returns
    1.3 Historical: 10 Week Ratings by ETF
    1.4 Historical: 10 Week Ratings by Week
  2. ETFs Detail
    2.1 XLB Materials
    2.2 XLC Communications
    2.3 XLE Energy
    2.4 XLF Financial
    2.5 XLI Industrial
    2.6 XLK Technology
    2.7 XLP Consumer Staples
    2.8 XLRE Real Estate
    2.9 XLU Utilities
    2.10 XLV Health Care
    2.11 XLY Consumer Discretionary
  3. Stock Detail (downloads)

1. ETFs Summaries

1.1 Current: Component Stocks Strength Ratings (1Strongest vs. 9Weakest vs. Ignore Status)

The following graphs reflect the composition of each of the ETFs based on their underlying component stock strength ratings which range from 1Strongest to 9Weakest. I only care about the strongest and weakest in each sector and thus categorize as "Ignore" stocks rated from 2VeryStrong through 8VeryWeak.

  • Top row: XLB/Basic Materials, XLE/Energy, and XLI/Industrial
  • Second row: interest rate-sensitive ETFs XLF/Financial, XLRE/Real Estate, and XLU/Utilities
  • Third row: XLK/Technology and XLC/Communications
  • Bottom row: XLP/Consumer Staples, XLY/Consumer Discretionary, and XLV/Health Care

1.2 Current: Component Stocks Positive vs. Negative Weekly Returns

The following pie charts show the breadth of positive and negative returns for the week for the component stocks of each ETF.

1.3 Historical: 10 Week Ratings by ETF

Below are 10-week historical strength rating summaries of the ETFs, sorted by ETF - each grouping shows the 10-week ratings change for individual ETFs. This shows the path each ETF has taken over the past 10 weeks to arrive at the current strength rating.

1.4 Historical: 10-Week Ratings by Week

Below are 10-week historical strength rating summaries of the ETFs, sorted by week - each grouping shows one week for all 11 ETFs in newest-to-oldest format. This reveals the weekly strengthening/weakening path of all the ETFs.

2. ETFs Detail

Details for each of the 11 ETFs are provided below. Comments:

  1. The top section shows the strength rating of the sectors comprising each ETF, based on the eight original Stock Market Organizer classifications and NOT the 11 ETF classifications. For example, the XLB Basic Materials ETF consists of 19 Basic Materials stocks, 6 Consumer Goods stocks, and 2 Industrial Goods stocks.
The fully detailed Stock Market Organizer world is comprised of 5 levels: stocks -> sub-industries -> industries -> sectors -> market. The sector definitions do not correspond exactly with those of the SPDR ETFs but for this analysis the ETF stocks are used.
  1. The middle section shows the previous 10 weeks' strengthening and weakening of the relevant sectors. For example, since the XLB has Basic Materials, Consumer Goods, and Industrial Goods stocks, these three sectors are shown in the middle section of the XLB detail. The XLF (Financial) has Financial, Services, and Tech stocks.
  2. The bottom section shows strengthening/weakening for the underlying ETF component stocks, and includes the listing of their Stock Market Organizer industries and sub-industries. These stocks are listed in order based on Sub-industry then strongest to weakest comparative stock strength rating. The Basic Materials XLB ETF includes both Newmont Corporation/NEM in the Gold sub-industry within the Metals & Mining industry and Dow Inc./DOW in the Specialty Chemicals sub-industry within the Chemicals industry.

    In these bottom sections, one can visually see the strength/strengthening and weakness/weakening of the component stocks in each ETF.

2.1 XLB Materials (27 stocks, small), WEAKENED RATING TO 8VWeak = WORST

2.2 XLC Communication Services (22 stocks, small), WEAKENED RATING TO 6Weak

2.3 XLE Energy (22 stocks, small), WEAKENED RATING TO 7Weaker

2.4 XLF Financial (72 stocks, large), WEAKENED RATING TO 6Weak

2.5 XLI Industrial (76 stocks, large), WEAKENED RATING TO 7Weaker

2.6 XLK Technology (69 stocks, large), Weakened at 7Weaker

2.7 XLP Consumer Staples (38 stocks, mid-sized), WEAKENED RATING TO 6Weak

2.8 XLRE Real Estate (31 stocks, small/mid-sized), WEAKENED RATING TO 6Weak

2.9 XLU Utilities (31 stocks, small/mid-sized), Weakened at 4Strong = BEST

2.10 XLV Health Care (61 stocks, large), Weakened at 6Weak

2.11 XLY Consumer Discretionary (51 stocks, mid-sized/large), WEAKENED RATING TO 7Weaker

3. Stock Detail

The downloadable PDF below lists all component stocks in order of first Strongest to Weakest ETF and second Strongest to Weakest Stock. The difference between this report and the 11 ETF stock listings above is this report consolidates all component stocks whereas the above listings are segregated by ETF.

SMO SPDR ETF Strength Report Stocks 2025-04-04
SMO SPDR ETF Strength Report Stocks 2025-04-04.pdf
2 MB
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Download the following Excel file if you would like to sort results yourself.

SMO SPDR ETF Stocks Sortable 2025-04-04
SMO SPDR ETF Stocks Sortable 2025-04-04.xlsx
553 KB
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