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Monday, July 2, 2012

Sector update

I have been covering a lot of economic data lately that has been getting pretty soft, but what is the market saying.  I thought I would take a look at some weekly charts of a few sector ETFs.  Lets start out with technology.

Notice the strength last Oct. compared to the lack of strength today.  Technology led the market up out of that low, but is stuck in neutral at this time.

Here are some very economically sensitive charts.

No real strength in the materials, energy or industrial sectors yet.  This makes sense given the economic data we have had lately.

Enough of the weak charts Bob, I want to know where the strength is.

Biotech, utilities, and healthcare have all made new highs lately.  Keep in mind these are traditionally defensive sectors and are often the last to top before a bear market.  If we do end up in a true bear market these sectors will eventually get hit.

Here are a couple of charts showing improvement.

Home builders and transports turned green this week.  These are two economically sensitive sectors that seem to be a little better then most.  Both charts are still below resistance, so follow through will be key. 


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