Info!! Sector Update For February 16Th

Last week's sector review institute that nosotros were getting bullish short-term tendency readings for virtually of the 8 S&P 500 sectors that I track. That postal service stressed, however, that, inward companionship to attain an upside cost break, nosotros needed to encounter Demand exceeding Supply (i.e., to a greater extent than stocks closing inward a higher house their moving average volatility envelopes than below) too novel 20-day highs outnumbering novel lows. We could non sustain that indicator forcefulness too straightaway convey moved dorsum to the bottom terminate of the recent trading hit betwixt 800 too 876 on the S&P 500 Index.

Here are the Technical Strength readings for the 8 sectors equally of Friday's close. Recall that Technical Strength for each sector varies from potent downtrend (-500) to potent uptrend (+500), amongst values betwixt +100 too -100 indicating no dominant trend:

MATERIALS: -400 (45%)
INDUSTRIAL: -300 (28%)
CONSUMER DISCRETIONARY: -320 (26%)
CONSUMER STAPLES: -220 (33%)
ENERGY: -160 (53%)
HEALTH CARE: -180 (76%)
FINANCIAL: -300 (15%)
TECHNOLOGY: -60 (54%)

We tin encounter that the short-term trends convey turned bearish for the economically-sensitive sectors, such equally Materials too Consumer Discretionary stocks, too equally Industrial too Financial issues. Technology has shown relative strength, equally has the NASDAQ 100 Index overall.

On a somewhat longer fourth dimension frame, inward parentheses above, nosotros tin encounter the per centum of stocks inward each sector that unopen inward a higher house their 20-day moving averages, equally reported past times the splendid Decision Point site. Only iii of the 8 sectors demo to a greater extent than than one-half their stocks trading inward a higher house that benchmark, compared amongst 7 concluding week.

Clearly we've weakened since concluding calendar week too straightaway are testing major back upwardly inward the 800 expanse of the S&P 500 Index. We unopen Fri amongst novel 20-day highs across the NYSE, NASDAQ, too ASE at 492; novel lows were 596. As long equally nosotros cannot sustain a plurality of novel highs, I await the marketplace to breach that 800 degree too examination the behave marketplace lows of November. As always, I volition live on tracking novel highs/lows, Demand/Supply, too the per centum of stocks inward a higher house their moving averages via Twitter each forenoon earlier the marketplace opened upwardly (free subscription via RSS).
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