Info!! Sector Update For November 1St

Last week's sector review noted a pullback to a multiday trading gain equally business office of what appeared to live on a topping procedure next September's momentum highs together with October's cost high. That scenario continued to unfold this by week, equally nosotros broke sharply below the trading gain together with shut nigh the week's lows. As nosotros tin forcefulness out reckon above, this has turned 5 of the 8 S&P 500 sectors that I rail bearish inwards Technical Strength, amongst the others giving neutral readings.

Note: Technical Strength is a proprietary mensurate of short-term trending; sector readings vary from +500 (strong bullish trend) to -500 (strong bearish trend), amongst scores betwixt -100 together with +100 indicating a neutral trend.

Here are the private sector readings equally of Friday's close:

MATERIALS: -300
INDUSTRIAL: -240
CONSUMER DISCRETIONARY: -200
CONSUMER STAPLES: -40
ENERGY: -100
HEALTH CARE: -140
FINANCIAL: -360
TECHNOLOGY: 20

What nosotros reckon is relative strength amid technology scientific discipline shares, which convey seen potent earnings, together with the defensive consumer staples stocks. Particularly weak convey been fiscal stocks together with economically sensitive raw materials shares. We saw a notable driblet inwards strength calendar week over calendar week amid unloose energy stocks, reflecting commodity weakness amid recent U.S. dollar strength.

Friday's considerable weakness next a rigid rally on Th was non a positive for the bulls. While it would non live on odd to reckon a short-covering bounce from here, I volition live on looking for farther signs of bottoming earlier committing to a resumption of the bull market. At this juncture, I am non viewing the electrical flow correction equally a fresh comport market, exactly equally an respite of a relatively novel bull market--not dissimilar what nosotros saw inwards early on 2004 next a steep rally off the 2003 lows. But we'll permit the incoming indicator information enjoin the story: tendency indicators, along amongst strength together with momentum measures, are updated each morn via Twitter earlier the marketplace open. You tin forcefulness out follow those here or hold an oculus on the 5 nearly recent tweets on the weblog page nether "Twitter Trader".

Note that we're going into a Fed coming together this coming week; that should touching how nosotros merchandise equally nosotros approach the announcement.
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