Info!! Sector Update For August 16Th

Last week's sector update noted that nosotros were seeing bullish sector action, amongst notable rotation too possible topping action. We've seen to a greater extent than of the same this by week, equally well-nigh of the S&P 500 sectors that I follow lost Technical Strength (a short-term stair out of trending). As nosotros tin dismiss run into above, fully one-half of the sectors are right away inwards a non-trending mode; alone the defensive Consumer Staples grouping gained push clitoris over the week. Particularly notable were dips inwards the economically sensitive Materials, Industrial, too Consumer Discretionary groups, equally questions attain got continued regarding consumer spending too the vigor of the economic scheme apart from auto-related stimulus.

Here's how the Technical Strength of the sectors looks equally of Friday's close. Recall that the sectors vary betwixt +500 (strong uptrend) too -500 (strong downtrend), amongst readings betwixt -100 too +100 suggesting no meaning directional tendency:

MATERIALS: 240
INDUSTRIAL: 220
CONSUMER DISCRETIONARY: 40
CONSUMER STAPLES: 200
ENERGY: -40
HEALTH CARE: -20
FINANCIAL: 320
TECHNOLOGY: 40

I give-up the ghost along to sentiment the recent marketplace activity equally purpose of a wide topping procedure that eventually should accept our sectors into bearish territory. Last fourth dimension that occurred (see early on July readings above), nosotros had an fantabulous intermediate-term buying opportunity. As long equally those pullbacks inwards Technical Strength hand at successively higher toll levels, nosotros attain got to regard the longer-term vogue equally bullish.
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