Large Cap Value $IWD has migrated to the top of the ETF Power Rankings for the US Indexes as growth continues to underperform.

Will growth continue underperforming?

This is the chart to look at it.

It's not over for growth until we see this ratio go below this line; I'd be surprised to not see growth begin outperforming as we hit this clear support level.

So while the trend has favored value for some time now, I wouldn't discount growth here.

The prevailing theme this year is that more international markets are challenging the dominance of the United States in equity performance.

This rotation has taken place for quite some time now and at least in the short-term it seems overextended.

A number of global ETFs are at big resistance levels and backed off last week. More importantly, as global markets stalled last week, this money did not flow back into the US.

This raises an important question; if international markets pause their gains, does this money flow into the U.S. markets (risk-on) or into safe haven assets (risk-off).

To demonstrate this point, here's a few examples.

Austria $EWO is near the top of the list and paused as it retested this resistance.

Singapore $EWS did the same.

And China $FXI is failing to hold this breakout.

And while international markets paused last week, the S&P 500 closed down 1.50% last week.

Not great.

It's clear that a structural shift is taking place here.

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The key theme here is the relentless strength out of the precious metal ETFs.

You can see below how they're clearly inhabiting the dark green.

With Silver looking like it's about to explode higher, this theme remains a no brainer until these trends can shift.

Meanwhile, software stocks - which have been a historical area of outperformance in the U.S. markets - have weakened to red territory.

This comes as growth has given up its leadership as money has rotated into prior laggards.

Just check out how Software $IGV has fallen into a downtrend.

Compare this with the relentless bid in the gold and silver miners - it's night and day.

There is so much alpha in the precious metals space right now.

The commodity supercycle is in motion, and the biggest opportunities are still ahead. JC and Jason nailed the gold trade last year — now they’re tracking the next wave. You can catch the replay to a recent live gold strategy call to see how they’re positioning.

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We're seeing more defensive sectors climb the leaderboard as the outlook for the U.S. markets weakens.

Perhaps an element of interest is to consider the areas of the market with the lowest overall correlation to macro conditions. Areas like Energy $XLE and Utilities $XLU are sporting the lowest correlation, with XLE not being correlated at all to the broader movements in the S&P 500.

This data is shown in the chart below.

For nimble traders and investors, there are still opportunities, albeit more difficult in a tape like this.

By focusing on low correlated areas of the market, it can reduce our overall risk in an uncertain market environment.

The U.S. markets have rebounded after reports the White House is easing their position on tariffs.

Most importantly is that this news has provided fertile grounds to build a new rally, and with the S&P 500 back above a key level of support the bias has shifted to a more optimistic one.

While value has climbed to the top of the rankings in recent weeks, we could see growth mobilize up the ladder as we see the trends that have persisted over the last month mean revert.

In other words, the short-term outlook has improved and it's in favor of growth right now.

Yesterday, Steve Strazza and Alfonso Depablos went live to discuss the screaming hot insider transactions hitting the tape as markets rebounded.

You want to know what the best insiders are buying? Click here to see the...

The S&P 500 continues slipping in the power rankings as long-term trends shift in favor of international markets.

This transition is clear in the S&P 500’s shift from green to red—signaling weakening relative strength.

We’ve highlighted this rotation for some time.

Two key questions arise from this:

• Will international markets outperform the U.S. over the long term
• Which leads in the short term?

Last week, money rotated back into the U.S., with the S&P 500 bouncing, albeit modestly. Further, the ratio between the two bumping into this resistance zone could signal further short-term strength for U.S. equities.

A pause in the capital exodus out of the States wouldn’t be surprising—many trends, including Gold, Bitcoin, and growth stocks, appear exhausted for now.

This week, we want to be on the lookout to see if money continues its short-term rotation out of global and back into the States. If so, it could set the stage for the next few months as international digest their gains.

In that tape, we could see some catch-up trades emerge in the...

Gold...

It's the hottest asset in town and it's smoking the U.S. markets in 2025. While the S&P is down 3%, Gold is up 14% and the Gold mining companies $GDX are up double that of 28%.

While this Gold trend has now certainly deserved a pause, the longer-term outlook is still decisively bullish.

Take a look at the Gold Miners ETF $GDX, which like all the precious metal mining funds is at the top of our list today. It's in the process of breaking out of a nearly five year base.

So long as GDX is above 44, the bias is to the upside for this group.

The dominant force in equity markets right now is the record rotation out of U.S. equities and into international markets.

The biggest losers over the past month? U.S. growth stocks. And at the tail end of that risk spectrum, speculative growth—best represented by ARK Innovation (ARKK)—has taken the hardest hit, dropping 25% and failing to hold its long-term breakout.

We’re closely watching whether this broader rotation out of U.S. stocks sustains in the coming months. If capital starts flowing back into the U.S., ARKK would likely be a major beneficiary.

A successful reclaim of its breakout level would set up a bullish long-term trend—but everything hinges on the international vs. U.S. capital flows.

We broke all of this down in yesterday’s Emergency State of the Markets stream. The All Star Charts team joined the discussion, along with esteemed trader John Netto, who shared his insights on the Fed’s announcement.

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As the U.S. markets have sold off, defensive sectors with lower volatility have done well.

Consumer Staples, Real Estate, and Utilities are all sectors with low beta that have outperformed.

Interestingly, Utilities had the perception of being a beneficiary of the AI trade last year while now they seem to have fallen back to their roots of providing a safe haven for U.S. investors.

As such, now the sector has built a longer-term base with a clean upper threshold at its prior support. If this ratio can break through the area marked below, it would point to an emerging trend favoring Utility stocks.

These types of trends don't happen often; it's only when the market is really under pressure.

The analysts at All Star Charts are hosting an emergency market update today at 2:30pm ET to break down what's happening with...

Most notably, Large Cap Value $IWD has climbed to the top of the rankings as U.S. growth has sold off.

The trend favoring value over growth is clearly intact over shorter timeframes. But what would it take for this to shift meaningfully over a longer time period?

Pictured below is the growth value ratio since 2020. While this ratio has taken a hit, it is still trading well above a key inflection point.

If this ratio were to move below 1.90, it would signal that a longer-term trend reversal is taking place in favor of value stocks.

That’s why we’re doing a State of the Markets. Join JC Parets, Steve Strazza, and more as they make sense of all this.

You can join at 2:30pm ET live by clicking here.

The same theme continues to dominate across the global markets; more money is rotating out of the United States and flowing into international markets.

As shown in above chart, the S&P 500 has now fallen into red territory while many international ETFs are trading at new highs.

Poland $EPOL, for instance, has risen to the top of the leaderboard and is up +36% YTD while the S&P 500 is down for the year.

We would encourage you to go through this list of ETFs in the above table - it's only 44 ETFs. What you'll see is a large number of country ETFs making new highs and rallying significantly in recent weeks.

While one could argue this trend is extended to the upside in the short-term, the longer-term implications of such an aggressive capital inflow into international equities is significant.

We could be at the beginning stages of outperformance from global relative to the U.S - a trend we haven't seen for 15 years.

Precious metal miners have climbed to the top of the rankings in an impressive fashion. This has been a persistent and growing trend over the last few weeks as Gold climbs to all time highs in the face of uncertainty in risk markets.

But it's not just these stocks showing relative strength. Insurance $IAK, for instance, has barely budged while U.S. stocks have aggressively sold off.

Broadly speaking, seeing rotation into these less growth-oriented industries makes sense as apart of a more defensive rotation. Insurance has exhibited less volatility, which could make it attractive for those looking for more stable equity market exposure in a volatile tape.