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Sunday, February 3, 2008

Sector Weeklies

Basic Naterials has a pretty clear top in place here. It has broken it's uptrend from 2005, amd although it go back above it last week, it is going to struggle to hold it.


Energy is pretty strong here, but is going to have resistance at the 40wma. Watch for stochastics to turn up here.

The weakest areas of the market got the biggest bounce. Financials look like they are going to try and test he 40wma, but there is heavy resistance between 30 and 31.

Industrials were one of the stronger areas of the market, but this is another clear topping pattern. I would be surprised if it got above the 40wma.

Technology took the biggest drop two weeks ago when the market was threatening to crash. Getting back above the August low would be somewhat positive, getting above the 40wma would be bullish. I doubt it will make it efore we have another drop.

Consumer Staples is one of the defensive areas of the market, but this took a beating too, and is now trying to get back above the 40wma.

Utilities ar stuck on the 40wma. This is one of the stronger areas of the market, and it doesn't look that good.

Health Care was the strongest area of the market of late, but it is struggling now. The 40wma has turned down and is going to be stiff resistance.


Consumer Discretionary also got a big bounce off it's lows. It has some momentum to the upside, so it could challenge the August lows, but is a long way from bullish territory.

This is a scalper's market. The best bet is to try to get bounces in oversold areas. I don't know how much longer this rally will last, but I think we will see a pullback soon.

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