Sunday, March 20, 2011

The weakest sector

While doing the regular weekend sector scan, most of the sectors look weak to me, but none weaker than Consumer Discretionary sector. A low volume run up for most of February followed by a sharp move down. Last week, it finally broke below MA(50) and has been range bound since. Look for a fall below last week's lows for further weakness.

Again, this still remains a news dominated market, but if the inidvidual sectors are anything go by, the last two up days have done nothing but work off the oversold conditions and set up the markets nicely for a further move down.

I will be back later with a few charts for next week.

Take care and good luck!

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