XLF non-conformance with SPX, was touted as the reason for being bearish on the overall market by many on this board. XLF was called the leading indicator. Now XLF makes a new high today (above the March high). Now what ? XLF is leading and SPX is lagging. So is SPX the leading indicator now based on the new non-conformance ? Or have the financial bears turned bullish now ? LOL.
Moral of the story: There is no leading indicator or sector or index on this planet. Trade each market/sector/index based on it's own merits. All these inter-market theory is fun and makes for a good academic exercise. But when you trade them in reality, you will be taken to the cleaners