Market Trends Watch

Today I want to review the market trends and changes from prior analysis.

Major Markets

There are some minor changes but nothing that has changed the outlook. Overall we are still trending lower.

Major Sectors

There are a couple of interesting developments in the sectors. The following 3 continue to get stronger while the rest of the sectors are mostly still languishing:

XLU - Utilities

XLV - Healthcare

XBI - Biotech

The Utilities and Healthcare are considered defensive sectors. But Biotech is usually a speculative sector.

So, let’s look at these closer.

Utilities

It has done well since the middle of June up about +10% in 3 weeks. It has a resistance coming up at 72.71 and then another one coming up at 75.35. Out of the last 9 trading sessions it is up on 8 of them. So, I am hesitant to get in now as there could very well be a little pullback. I will look at it again if the price (currently at 71.85) goes above the first resistance at 72.71.

Healthcare

This one has only one resistance above at around 130.73 and after that it has clear path. So, if the price breaks through that resistance I would be a buyer. Time to watch closely.

Biotech

The trends look good, and price is definitely swinging higher. I will play short-term with some options. I still feel squeamish with Biotech.