Info!! Sector Update For January 17Th

Last week's sector review constitute that the S&P 500 sectors were largely inwards a neutral mode, alongside the exception of fiscal stocks, which were inwards clear downtrend. Those financials, peculiarly banks, led stocks farther downward this past times week, placing nigh of the sectors inwards clear downtrends, equally measured past times Technical Strength, my quantification of short-term trending behavior. Here's how nosotros hold off equally of Friday's close:

MATERIALS: -300
INDUSTRIAL: -280
CONSUMER DISCRETIONARY: -120
CONSUMER STAPLES: -20
ENERGY: -200
HEALTH CARE: -80
FINANCIAL: -500
TECHNOLOGY: -120

We tin give the sack run across that the 2 nigh defensive sectors, consumer staples in addition to wellness care, are showing relative strength. Financial shares are extremely weak, in addition to materials stocks are laboring nether the burden of commodity weakness. Clearly the marketplace is behaving equally if the fiscal crisis affecting banks--and recessionary outlook overall--have non nonetheless resolved.

Technical forcefulness ratings for the handbasket of forty stocks taken from the viii sectors inwards a higher house are published each morning time earlier the marketplace opened upward via Twitter (free subscription). Comparing the ratings day-over-day provides a prissy mensurate (along alongside Demand/Supply in addition to 20-day highs/lows) of whether the stock marketplace is gaining or losing short-term strength.
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Info!! Indicator Update For January 17Th

Last week's indicator review establish a strengthening stock market, alongside bullish trending amidst a bulk of sectors in addition to novel highs inwards the advance/decline line. With weakness slowly this past times week, nosotros convey pulled dorsum to a gain market. Here's how the indicators are shaping up:

1) Technical Strength (bottom chart) - This proprietary index of short-term trending is showing really mixed sector conditions, alongside bullish trending inwards the Industrial, Health Care, in addition to Technology areas, bearish trending inwards Consumer Discretionary shares, in addition to a neutral fashion amidst Materials, Consumer Staples, Energy, in addition to Financial stocks. Particularly weak from the prior calendar week were Materials in addition to Energy shares, reflecting a commodity pullback. Overall, we're seeing sector rotation inside a gain trade;

2) New 20-Day Highs/Lows (middle chart) - The novel highs minus lows across NYSE, NASDAQ, in addition to ASE shares striking 2010 lows on Friday, registering greater weakness than nosotros saw at the really halt of 2009. This retracement of the 2010 clitoris suggests that nosotros may live seeing a topping procedure inwards action, alongside recent highs representing momentum peaks. If that is the case, nosotros could nonetheless come across farther cost strength, simply this would probable live accompanied past times growing divergences in addition to non-confirmations.

3) Advance/Decline Line (top chart) - I've chosen to focus hither on the S&P 600 pocket-size cap stocks, every bit tracked past times the fantabulous Decision Point site. We tin come across that, whereas large cap indexes rest at A/D business highs relative to their 2009 peaks, pocket-size caps are correct at that those A/D business highs every bit of Friday's close. I volition live tracking pocket-size caps really closely this coming week; if they exhibit weakness relative to large caps, that would back upwards the notion of a topping market.

As always, I volition live posting daily updates of my indicators via Twitter earlier the marketplace open. You tin read those on the spider web log page nether Twitter Trader (last 5 posts are on the page), or yous tin subscribe to the Twitter feed costless of charge.
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