Info!! Sector Update For January 10Th

Last week's sector review flora bear witness of a clear upside breakout with the viii S&P 500 sectors that I follow as well as the handbasket of xl stocks drawn evenly from those sectors. H5N1 precipitous reversal this week, however, has returned us below the quondam resistance expanse inward the depression 900s as well as dorsum into the prior trading range. This reversal is reflected across the sectors, every bit measured yesteryear the Technical Strength mensurate that quantifies trending:

MATERIALS: -200 (52%)
INDUSTRIAL: -60 (68%)
CONSUMER DISCRETIONARY: -80 (65%)
CONSUMER STAPLES: -60 (43%)
ENERGY: -120 (68%)
HEALTH CARE: +120 (59%)
FINANCIAL: -360 (33%)
TECHNOLOGY: -100 (70%)

Financial stocks clearly lag the group, with commodity-related weakness taking a cost on materials as well as release energy shares. Overall, the pic is no longer i of trending; for the nearly part, we've returned to a make saltation mode. Following the day-to-day tendency ratings for the handbasket of stocks posted earlier each marketplace opened upward via Twitter (free subscription) has been real helpful inward catching the unfolding weakness.

When nosotros expression at the proportion of stocks inward each sector trading inward a higher house their 20-day moving averages every bit reported yesteryear Decision Point (in parentheses), nosotros every bit good encounter deterioration inward momentum relative to final week. Once again, it is clear that fiscal stocks are the weakest sector, significantly underperforming the other groups.

Not reflected inward the sector information is the fact that pocket-size cap stocks bring gone from a seat of leading large caps to i of lagging. Among S&P 500 stocks overall, 58% of issues are trading inward a higher house their 20-day moving averages every bit of Friday's close. Only 41% of S&P 600 pocket-size caps, however, are trading inward a higher house their benchmarks. What this suggests is that, spell weakness has been concentrated inward fiscal as well as commodity-related shares, it has every bit good affected the broader market. This is non the sort of activity i expects next a bullish upside breakout, as well as it volition bring me next the indicator information closely this coming week.
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