Info!! Sector Update For March 8Th

Last week's sector review observed that, "What makes this marketplace notable is that oversold levels are remaining oversold from calendar week to week, rather than leading to pregnant rallies." That blueprint continued this past times week, every bit the oversold sectors remained quite weak, amongst major averages touching fresh demeanor marketplace lows.

Here is how Technical Strength (a quantification of short-term trending) shapes upwards for the 8 S&P 500 sectors that I rails weekly. Recall that the Technical Strength of sectors varies from -500 (very rigid downtrend) to +500 (very rigid uptrend), amongst values betwixt -100 in addition to +100 representing no pregnant trend:

MATERIALS: -360 (10%)
INDUSTRIAL: -340 (0%)
CONSUMER DISCRETIONARY: -380 (5%)
CONSUMER STAPLES: -200 (5%)
ENERGY: -320 (8%)
HEALTH CARE: -380 (2%)
FINANCIAL: -420 (4%)
TECHNOLOGY: -300 (17%)

What nosotros run into is that weakness is relatively evenly spread across sectors, amongst exclusively the to a greater extent than defensive Consumer Staples shares showing a chip of relative strength. Financial stocks stay quite weak; they convey been the marketplace leaders to the downside for a spell now.

In parentheses, nosotros tin flame run into the per centum of stocks inside each sector that shut on Fri inwards a higher house their 20-day moving averages, every bit reported past times As I noted recently, however, the marketplace regimes inwards house since mid-2007 convey been anything but normal. Until nosotros tin flame run into to a greater extent than or less improvement inwards the novel high/new depression in addition to Demand/Supply numbers (both updated prior to each marketplace opened upwards via Twitter; free subscription), it is premature to larn bottom fishing. That opinion has kept us from fighting the demeanor for the final few weeks; no uncertainty at to a greater extent than or less betoken we'll larn that pregnant rally. Given the breadth of marketplace weakness, nosotros simply don't know at this juncture whether or non whatever such rally mightiness come upwards from far lower cost levels.
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