SPDR Sector ETFs Tue 2025-03-25: 5.1 Strength Score (Strengthened +0.1)

Brian Degracia

25 Mar 2025 • 11 min read

U.S. MARKET SLIGHTLY STRENGTHENED FOR THE WEEK ENDING TUESDAY 2025-03-25. XLC/Communication Services, XLE/Energy, and XLI/Industrial strengthened rating. XLV/Health Care weakened rating. XLC/Communication Services, XLE/Energy, XLF/Financial and XLU/Utilities are strongest at 4Strong. XLB/Materials, XLK/Technology, XLV/Health Care, and XLY/Consumer Discretionary are weakest at 6Weak.

This post objectively summarizing current market conditions 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 Tuesday's report is available here (SPDR Sector ETFs Tue 2025-03-18: 5.2 Strength Score Strengthened +0.4).

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 ON" as of Friday, March 14, 2025 - to discern appropriate portfolio exposure and risk/position management given prevailing market and sector conditions.

Today the Market Strength Score is +32%, with plenty of room to eventually reach the extreme of +100%.

This is not a prediction that it will go to the extreme of +100%, it is simply highlighting where the market is relative to a potential extreme.

Here is the corresponding Market Strength Score:

The early in positive territory Market Strength Score reflects a supportive environment for new long 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.

Comparison of this week vs. 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 Tuesday, March 25, 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).

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, which is shown below in Section IV. Today's Market Context.

The average returns ranged from -1.4% (XLU/Utilities) to 3.3% (XLY/Consumer Discretionary), with 6 positive out of 11 sectors for the week.

The best and worst are highlighted below:

Best:

XLY/Consumer Discretionary, 3.3% average for 51 stocks
XLC/Communications, 3.2% average for 22 stocks
XLE/Energy, 3.0% average for 22 stocks

Worst:

XLU/Utilities, -1.4% average for 31 stocks
XLP/Consumer Staples, -1.3% average for 38 stocks
XLV/Health Care, -1.1% average for 61 stocks

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.

High and Low Returns

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

XLY/Consumer Discretionary had the strongest week at +3.3% and XLP/Consumer Staples had the worst at -1.3%. Strongest stock at +28%: XLY AUTOMOTIVE - Auto Manufacturers - Major, TSLA/Tesla Inc which strengthened from 7Weaker to 5Average. Weakest stock at -9%: XLY CONSUMER NON-DURABLES - Textile - Apparel Footwear & Accessories, NKE/Nike Inc Cl B, remained 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:

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).
By Type - logically groups the ETFs (for example, interest rate-sensitive, technology-related, consumer-related) for direct comparison with similar ETFs.
By Strongest to Weakest
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 Tuesday week-to-week changes compared to the current week.

03/11/2025 = Weakened, 03/18/2025 =Strengthened, 03/25/2025 = Strengthened.

Current Status: 5.1 Composite Score, Strengthened +0.1 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

XLC/Communication (STRENGTHENED RATING)
XLE/Energy (STRENGTHENED RATING)
XLF/Financial (Strengthened)
XLU/Utilities (Weakened)

5Average

XLI/Industrial (STRENGTHENED RATING)
XLRE/Real Estate (Unchanged)
XLP/Consumer Staples (Weakened)

5.1 - Composite Score

6Weak

XLK/Technology (Strengthened)
XLY/Consumer Discretionary (Strengthened)
XLB/Materials (Weakened)
XLV/Health Care (WEAKENED RATING)

7Weaker
None

8VeryWeak
None

9Weakest
None

IV. Today's Market Context

Indexes and ETFs Weekly Performance

Key Headlines

Marketwatch:

GameStop’s stock jumps as the videogame retailer makes its bitcoin move
Trump plans ‘secondary tariffs’ on buyers of Venezuelan oil. Why it’s ‘radical’ and what’s at stake.
Gold is crushing the S&P 500. What that says about recession fears and the stock market.
Alibaba’s chair is the latest to warn of an AI bubble. Is that a problem for Nvidia?
Techs Lead, Small Caps Lag In Constructive Session

CNBC:

S&P 500 ekes out a gain Tuesday to post third winning session
Russia, Ukraine agree to truce at sea and ban on energy attacks
Oil companies prepare for a showdown with Pres. Trump’s ‘drill, baby, drill’ agenda
Why there’s likely more pain ahead for U.S. stocks, according to HSBC
Recession is coming before end of 2025, generally ‘pessimistic’ corporate CFOs say: CNBC survey

Yahoo!:

23andMe has filed for bankruptcy. What happens to your DNA data?
Trading Giants Say They’ll Return to Russia If Sanctions Lift
S&P 500, Nasdaq notch 3rd straight day of gains
Americans are continuing to sour on the economy
GameStop Is Latest Public Firm to Jump on the Bitcoin Bandwagon

Key Current Readings

SP500: 5,776.65
Nasdaq: 18,271.86
Nasdaq 100: 20,287.83
Russell 2000: 2,095.38
10Y Treasury: 4.317%
2YT: 4.017%
Oil (WTI Crude): $69
Bitcoin: $87,668
Dollar Index: 104.21
Gold: $3,025.9
VIX: 17.15
(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 week just ended, as follows:

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
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
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

The headers for each graphic are color-coded. ETFs rated 4Strong or better have green headings. ETFs that changed rating this week have deep green or red backgrounds. ETFs that strengthened or weakened but did not change rating have pale green or red backgrounds.

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:

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.

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.
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 at 6Weak = tied for WORST

2.2 XLC Communication Services (22 stocks, small), STRENGTHENED RATING TO 4Strong = tied for BEST

2.3 XLE Energy (22 stocks, small), STRENGTHENED RATING TO 4Strong = tied for BEST

2.4 XLF Financial (72 stocks, large), Strengthened at 4Strong = tied for BEST

2.5 XLI Industrial (76 stocks, large), STRENGTHENED RATING TO 5Avg

2.6 XLK Technology (69 stocks, large), Strengthened at 6Weak = tied for WORST

2.7 XLP Consumer Staples (38 stocks, mid-sized), Weakened at 5Avg

2.8 XLRE Real Estate (31 stocks, small/mid-sized), Unchanged at 5Avg

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

2.10 XLV Health Care (61 stocks, large), WEAKENED RATING TO 6Weak = tied for WORST

2.11 XLY Consumer Discretionary (51 stocks, mid-sized/large), Strengthened at 6Weak = tied for WORST

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 2025-03-25

SMO SPDR ETF Strength Report Stocks 2025-03-25.pdf

2 MB

Download the following Excel file if you are interested in sorting results yourself.

SMO SPDR ETF Stocks Sortable 2025-03-25

SMO SPDR ETF Stocks Sortable 2025-03-25.xlsx

553 KB