Week 7 SPX Sectors Trending and Performance
I reviewed the major markets yesterday and found that there was some weakening in their trending and February was also eating up some of the gains from January. Let’s review the SPX sectors to see how they are doing against the S&P 500.
Trending Heat Map this week.
Trending Heat Map from last week.
Trends strengthening are (3): XLU, XLP, XLI,
Trends weakening are (6): XLRE, XLK, XLF, XLE, XLC, XLB
Week-over-Week Performance
Positive returns for this week are (5): XLY, XLU, XLP, XLI, XLC
Negative returns for this week are (6): XLV, XLRE, XLK, XLF, XLE, XLB
Performance over various periods
Most sectors are negative for February but only 3 are negative for the year.
Observations and Conclusions:
The sectors, as expected, are mixed with more of them trending weaker. Again, that is expected based on what we saw on the S&P trending. The markets could be going defensive as evidenced by the strength in XLI, XLU and XLP.
Technology XLK and Communications XLC have just started weakening a bit. So, could be good bets to the downside.
Healthcare XLV continues to weaken. Energy XLE and Materials XLB had big falls last week turning them short-term bearish.