Saturday, September 11, 2010

Sector analysis

Materials - At important levels as facing multi month resistance. Consolidating nicely here but notice the low volume on this move up.

Energy - MA(50) acting as support. MA(200) will be a hard nut to crack. Again, notice the low volume.

Financial - Still stuck in a multi month range. A break of this range in either direction would be a game changer for the overall markets.

Industrial - Facing resistance but a bullish pattern. 

Technology - MA(50) providing support. Looks set to challenge the MA(200). Relatively under performing. 

Consumer Staples - Relatively stronger sector. Again, notice the lower volume though. Moving averages set up nicely below.

Utilities - One of the strongest looking sectors. One of the few sectors with moving averages set up properly i.e. MA(20) > MA(50) > MA(200).

Healthcare - Nice move up last week but multi-month resistance right ahead. Pullback or consolidation here would do it no harm.

Consumer Discretionary - Like the consolidation here. Looks set to crack the first resistance level.

To sum it up, the various sectors can be put into two groups. Some like financials and technology are stuck in a multi month range and face important resistance levels next week while others are consolidating here and are look bullish in the short term. Utilities looks to be the best looking sector right now.

I will be back later with posts looking at the week ahead and some stock picks for next week.

Take care and good luck!

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