A Doctor would never diagnose a patient without first seeing what’s going on inside. A mechanic won’t be able to tell you what’s wrong with your car without lifting the hood. It’s no different in the market. How can we possibly judge the S&P500 without opening it up first to see what’s happening among its components.
Today we’re going to focus on the sectors themselves. We’re looking at weekly candlestick charts for all of the 11 major sectors:
- Real Estate
- Consumer Discretionary
- Consumer Staples
- Communication Services
How many sectors are making new highs? How many are making new lows? Are more of them starting to trend higher or are more of them starting to trend lower. In which direction are consolidations resolving, higher or lower? [Read more…]