Info!! Sector Update For February 8Th

Last week's sector update reported that the viii S&P 500 sectors that I assess for short-term trending were largely inwards a moderate downtrend mode, alongside economically sensitive sectors especially weak as well as defensive sectors displaying relative strength. I concluded, "Unless nosotros tin terminate sustain a province of affairs inwards which novel highs outnumber novel lows as well as confidence comes into the Financial, Materials, as well as Consumer Discretionary sectors, I await us to survive testing recent marketplace lows." We did, indeed, run across prices motion toward the bottom their recent arrive at inwards the depression 800s inwards the S&P 500 futures contract, only firmness belatedly inwards the calendar week as well as Friday's sharp rally on potent coin flow helped us concur back upward ane time more.

Recall that the Technical Strength mensurate of short-term trending varies from +500 (very potent uptrend) to -500 (very potent downtrend) for each sector, alongside numbers around nil (-100 to +100) representing a relative absence of trend. Here's how we're looking every bit of Friday's potent close:

MATERIALS: -220 (59%)
INDUSTRIAL: -120 (52%)
CONSUMER DISCRETIONARY: -160 (54%)
CONSUMER STAPLES: +120 (70%)
ENERGY: +180 (88%)
HEALTH CARE: +140 (93%)
FINANCIAL: -140 (44%)
TECHNOLOGY: +260 (84%)

We tin terminate run across that, despite the rally belatedly inwards the week, the sectors are nowhere close levels associated alongside potent uptrends as well as so cannot survive considered overbought. Indeed, nosotros all the same run across residuum weakness amidst Materials as well as Consumer Discretionary shares, likewise every bit Financial issues, though their Technical Strength has improved. Technology is the ane sector displaying a clear uptrend; banker's complaint that the NASDAQ Index is at 2009 highs, fifty-fifty every bit other indexes lag.

As nosotros human face at a longer fourth dimension frame as well as the per centum of stocks from each sector trading higher upward their 20-day moving averages, every bit reported past times Decision Point, nosotros run across that all of the sectors demo a bulk of shares trading higher upward that benchmark, alongside the exception of Financial stocks. Indeed, looking fifty-fifty farther out, nosotros tin terminate run across that over 50% of all S&P 500 stocks are forthwith trading higher upward their 50-day moving averages, upward from virtually 25% early on inwards the week.

This suggests that, alongside continued back upward inwards the depression 800 arrive at as well as Friday's strength, the intermediate-term tendency has turned bullish. Among the indicators that I follow daily via Twitter, nosotros volition desire to run across Demand overstep Supply going forwards as well as 20-day novel highs outnumber novel lows inwards gild to sustain the uptrend as well as challenge the 2009 highs.
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