Week 16 SPX Sectors Trending and Performance
The Industrials sector XLI remains perfectly bullish along-with the broader S&P 500 index. It is a bit disconcerting when only 1 out of 11 sectors that make up the broad index is perfectly bullish while the broader index is also perfectly bullish.
there are 5 of the 11 sectors whose 50-day moving average of price is below their 200-day moving average of price. That is long-term bearish. The Financials XLF just had their death cross.
I am not trying to paint a dire picture. Just laying out the facts. One thing is how the picture itself looks like (if you look below, it is still quite green) and the other is the change in the trends.
Trending Heat Map
Technology XLK price dipped below its 10-day and 20-day moving averages.
Financials XLF turned long-term bearish meaning the 50-day moving average dipped below the 200-day moving average (Death Cross).
One way to look at the markets is through the sectors as above. The other way to get a perspective is to look at the top stocks within the S&P 500. The Top 25 stocks account for 41.14% of the S&P 500 as of this writing. And the Top 2 (AAPL and MSFT) account for 13.43% of the S&P 500. Here is the list:
Trending (Top 25 Stocks)
The above picture is probably a better reflection of the underlying that is driving the broader market.
Performance (SPX Sectors)
The big winners this year so far are XLY, XLK and XLC. When we see their big stock components, we can understand why they have outperformed.
XLY has AMZN and TSLA
XLK has AAPL and MSFT
XLC has META and GOOGL
Interestingly, all these 3 sectors are down so far in April. Other than these, XLI, XLE and XLB are also down. That makes it 6 out of 11 sectors down so far this month. My overall bias remains to the downside for the near future.