Info!! Sector Update For January 4Th

Last week's sector update establish continued make outflow weather condition for the 8 S&P 500 sectors that I rails alongside the Technical Strength indicator of short-term trending. With the pause higher upwards substitution resistance inwards the depression 900 degree on the S&P 500 Index, the Technical Strength readings looked quite dissimilar yesteryear Friday's close:

MATERIALS: +40 (86%)
INDUSTRIAL: +320 (98%)
CONSUMER DISCRETIONARY: +400 (95%)
CONSUMER STAPLES: +360 (93%)
ENERGY: +380 (100%)
HEALTH CARE: +460 (95%)
FINANCIAL: +20 (83%)
TECHNOLOGY: +320 (96%)

Clearly the tendency has turned upwards across the sectors, though Materials as well as Financial shares lag the group. The potent bounce amidst Technology as well as Consumer Discretionary shares suggests that recovery themes may last trumping recessionary ones to get-go 2009.

When nosotros expect at the per centum of stocks inwards each sector trading higher upwards their 20-day moving averages, equally assessed yesteryear Decision Point, nosotros tin meet the distinct intermediate-term uptrend next the breakout. Even amidst the 2 lagging sectors, the cracking bulk of issues are trading higher upwards their 20-day averages.

While the sectors are extended relative to those 20-day averages, nosotros are nowhere most overbought alongside honor to longer-term 50- as well as 200-day averages. If indeed nosotros stimulate got set inwards an of import bottom inwards November, nosotros should last able to back upwards a rally that would eventually accept us into overbought territory on a 200-day basis.

Note that I update Technical Strength figures each morn earlier trading days via Twitter; RSS subscription to the indicator as well as link updates is free.
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