Info!! Sector Update For February 1St

Last week's aspect at the viii S&P 500 sectors that I rails closely alongside the Technical Strength mensurate (a metric that quantifies trending deportment on a curt fourth dimension frame) establish that all the sectors were displaying either pocket-size or moderate downtrends, alongside the greatest weakness amid fiscal issues. That same analysis establish that alone the Energy sector showed to a greater extent than than 50% of its components trading inwards a higher house their 20-day moving averages. The post service noted, "Throughout the calendar week for the marketplace position overall, 20-day novel lows bring consistently outnumbered novel highs. Unless together with until that changes, the intermediate-term tendency has to move viewed every bit bearish."

Interestingly, nosotros did transcend away a spurt of buying during the calendar week that took novel 20-day highs inwards a higher house novel lows, only yesteryear week's terminate nosotros had reversed together with the novel lows in 1 lawsuit once to a greater extent than took the lead. That left nigh of our sectors inwards downtrending style on the Technical Strength measure:

MATERIALS: -380 (10%)
INDUSTRIAL: -240 (22%)
CONSUMER DISCRETIONARY: -240 (11%)
CONSUMER STAPLES: -200 (35%)
ENERGY: -120 (40%)
HEALTH CARE: -200 (59%)
FINANCIAL: -240 (9%)
TECHNOLOGY: -180 (29%)

In parentheses, nosotros tin give the sack run across the per centum of stocks inside each sector trading inwards a higher house their 20-day moving averages, every bit reported yesteryear Decision Point. Only Health Care shows to a greater extent than than one-half of its components trading inwards a higher house that benchmark; banker's complaint the extreme weakness amid Financial, Materials, together with Consumer Discretionary shares--all ones that are affected yesteryear the electrical flow banking crisis together with recession. The to a greater extent than defensive sectors--Health Care together with Consumer Staples--are showing describe relative to those to a greater extent than economically sensitive sectors.

In short, the novel highs/lows, Technical Strength, together with themes amid sectors transcend away on to reverberate bearishness. Unless nosotros tin give the sack sustain a province of affairs inwards which novel highs outnumber novel lows together with confidence comes into the Financial, Materials, together with Consumer Discretionary sectors, I aspect us to move testing recent marketplace position lows. As always, Technical Strength for the handbasket of forty stocks that I follow, percentages of stocks inwards a higher house their moving averages, together with novel highs/lows volition move updated each morn prior to trading via Twitter (free subscription via RSS).
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