Screenshot-2020-09-28-at-10.35.36-AM-280x300 ZYTrade Technical Snapshot - How Are All Eleven Sectors Performing Year to Date?

Source: SPDR Sector Tracker

It’s a real mixed bag, as you can see. With Wells Fargo warning of another deep correction, Citi telling investors to avoid stocks, and others warning us that we can see a double whammy in a collapsing market and dollar, all of this, of course, spells opportunity, but the timing is uncertain. And depending on your position, timing may be everything.

 

So where do each eleven sectors stand, technically speaking, and using the SPDR index ETFs as a proxy?

 

  • XLC sees critical support at 57.00, currently challenging resistance in a gap opening (hammer), whose bullishness looks questionable given the lack of volume behind the gap.
  • XLY shows a similar scenario, support at 139.00.
  • XLP broke above resistance at 63.56 on low volume, support at 61.80.
  • XLE hit a new low last week; a move below 29.50; a move below can see it sink to as low as 27.50; resistance at 32.50.
  • Will XLF reverse as soon as it reaches its gap at 24.50, or might it test the 25.00 range? Support at 22.90.
  • XLV is barely accelerating toward its 107.00 resistance on very low volume. Support is strong at the 100.00 range (near-term trend is down; intermediate-term trend is up).
  • XLB entered record territory over the last few weeks, establishing 67.15 as its all-time-high. 60.90 and 59.60 provide strong support.
  • XLRE is trading within a 4-month rectangle formation, negotiating the positive news in home sales against the likelihood of coming evictions and foreclosures. Resistance is at 38.00; support at 33.80.
  • XLK also pulled back from all-time-highs, bouncing back from support at 109.00, potentially advancing toward resistance at 127.72 (which, for now at least, has very little volume behind it).
  • XLU is also trading within a range, this one quite wide between 63.00 resistance and 53.60 support.

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