Mar. 1 at 2:17 PM
Equities Saw Broad 3-Month Momentum Deceleration
- Equities register unanimous 3-month momentum deceleration this week with every ETF losing momentum week over week.
- Breadth remains supportive as 14 of 17 ETFs are positive on 3-month momentum despite the universal weekly decline.
- Leadership is defensive with
$EFA and
$SDY in top decile 52-week momentum while US growth beta is weakest as
$IWF and
$SPYG sit in decile 8 and
$SPYG is now below zero.
- Correlation structure reinforces the split as
$EFA and
$SDY show low 3-month correlation against
$SPY at 0.23 and 0.08 while
$IWF and
$SPYG hold high correlation at 0.89 and 0.88.
- Leaders produce concentrated idiosyncratic returns while weakness remains benchmark-tethered, creating a setup where outcomes hinge on selection versus simple beta exposure and risking abrupt compression if correlation levels revert toward their 52-week means.
