The recent Nasdaq/QQQ risk regime profile is currently in a “risk-off” state with 0% exposure recommended quantitatively. The model flipped to 0% exposure week ending March 13th.
But as alluded to in the March 1st, 2026 market profile, Wall Street has been holding a “risk on” appetite.
Intermarket relationships against the S&P 500 continue to reflect a rotation toward risk-sensitive assets:
- Growth has been outperforming value
- Software equities are outperforming long-duration bonds (iShares 20+ Year Treasury Bond ETF)
- Transports are now leading utilities
- Consumer discretionary is outperforming consumer staples
- Small caps are showing relative strength vs. large caps
This alignment suggests that, beneath the surface weakness in price, capital is not rotating defensively but remains positioned toward economically sensitive and higher-beta areas of the market.
The divergence between price action and internal rotation is notable and will be critical to monitor.
Each chart expands upon click.
Until these relationships reverse, the underlying structure does not reflect a sustained risk-off regime.