Info!! Sector Update For July 5Th

Last week's sector review indicated that nosotros were inwards a corrective mode, inwards which stocks were trading inside a wide trading hit defined yesteryear the May cost lows together with June highs. After failing to sustain a rally to novel highs, the marketplace brutal on weak economical intelligence this yesteryear week. This has us coming approximately probing the lows of the trading range.

Above nosotros run across the Technical Strength readings for the 8 S&P 500 sectors that I follow weekly. Recall that Technical Strength is a proprietary, quantitative mensurate of short-term trending that varies from +500 (strong uptrend) to -500 (strong downtrend) for each sector. Readings betwixt -100 together with +100 signify no pregnant directional tendency for the sector.

We tin run across that the bulk of sectors are displaying downtrends, alongside the exception of the neutral condition for Health Care together with Technology sectors. Note the item weakening of the Financial sector. Here are how the sectors job upwards equally of the unopen of the holiday-shortened week:

MATERIALS: -140
INDUSTRIAL: -140
CONSUMER DISCRETIONARY: -160
CONSUMER STAPLES: -220
ENERGY: -240
HEALTH CARE: +60
FINANCIAL: -280
TECHNOLOGY: +60

I hold to persuasion this equally a corrective crusade inside a bull marketplace together with a wide hit saltation market. Having failed to attain the hit highs together with significantly weakened thereafter, the marketplace appears poised to examination its hit lows; I would non last surprised to run across us accept out those lows--particularly if novel 20-day lows amidst stocks hold to outnumber fresh 20-day highs. I volition last tracking marketplace indicators closely together with posting them earlier the opened upwards via Twitter; those volition attention us decide whether nosotros ultimately merchandise dorsum into the two-month hit or kickoff a to a greater extent than pregnant acquit leg/correction.
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