Thursday, May 20, 2010

Sector BreakDown Experiment

I just went through XLY, XLV, XLU, XLP, XLK, XLI, XLF, XLE, XLB and gathered some facts about them. I made a bearish/bullish view toward each item. The items are not wighed so take it with a grain of salt. I'll post each chart (daily) below. 

Click to Enlarge above
XLU, XLE and XLB seem to have broken the trend and now fighing to get past the previous lows and also below the 150/200ma's. XLE and XLB are both below RSI 30 and are lower in RSI then the March 09 RSI low. I would consider XLE and XLB are more oversold than any other sector as of tonight. XLE and XLU of these 3 have hit the 38.2% retrace from March 09 lows to the most recent highs while XLB has not.
XLY Seems to be one sector that has more room on the downside before it nears the positive trend base that they all typically share.
Knowing that SPX is more heavy in XLK and XLF I want to look at those to sectors to see what I can gleen. XLK seems to be more down side potencial than XLF, but something interesting about XLF is that the Volume is not typical of the other sectors. It is not larger than average and the sell volume trend is not going up.
XLB                                            XLE
XLF                                             XLI
XLK                                                 XLP
XLU                                                   XLV                                                  


  1. Very good post, Russ. One thing.. Notice that XLY is a risk sector. It can bounce earlier than the rest because it usually lead to both the upside or the downside. In this case, it might not join the other sectors once a bounce happens. If it starts to lag while the other sectors advance, then this is another sign that people are avoiding risk, which is bearish for the market and another confirmation of market trend change. Best!

  2. Thanks for the info GV. Today I do see XLY taking somewhat of a lead along with XLF and XLB.