Sector and Index Sentiment Update 8/19/25

Sentiment Diverges

Summary

No major changes to sector sentiment. Both Offense and Defensive groups are softening. The three strongest sentiment sectors are XLK, XLY, and XLC as the market keeps focused on the mega caps. One defensive sector has its lowest sentiment score since 2023 right now. Looking at the Indices, the divergence in the % Bullish for Nasdaq 100 and SPX remains intact, both at 70% at end of last week.

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Sector Sentiment Spread

Both Defensive and Offense Sector Sentiment are moving lower. While this leaves the Spread above 0, it’s under 5 and showing weakness while the broad market sits just under a prior all-time high.

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