S&P 500 Sector SPDRs Preview

Mark Putrino  |

In financial markets, there are certain price levels that are more significant than others with regards to the amount of supply and demand that exists at them.

Prices are always doing one of three things. They are either going up, going down, or staying the same.

An understanding and awareness of these levels and trends will add alpha to almost any investment strategy.

BHT does not utilize many of the esoteric technical analysis techniques such as Gann theory or harmonic charts and believe they belong in the realm of Bigfoot and UFOs…fun to talk about but hardly credible.

BHT utilizes a process and methodology that has been developed over twenty years in order to identify these levels and trends.The philosophy and method is based on experience, common sense, and logic.

BHT identifies meaningful trends and important supply and demand levels in the financial markets. The following are important dynamics to consider in the S&P 500 Economic Sector SPDRs:


S&P 500 SPY broke its recent uptrend two weeks ago and have been trading sideways since then.

Technology  (XLK) broke the resistance around $63.50. This level is now support and is an important level because it is where the recent lows were in February, April, and November.

Financials  (XLF) broke the $25 level and are now consolidating just under $26.

Healthcare  (XLV) has been consolidating between $88 and $90.

Consumer Discretionary  (XLY) has spent the last three weeks consolidating around the $106 level.

Industrials  (XLI) are testing important resistance around the $71 level.

Consumer Staples  (XLP) are consolidating around the $52 level.There is resistance around this level because it is where the recent lows were in October.

Energy  (XLE) has broken its uptrend and is trading sideways.

Materials  (XLB) are testing resistance around the $54 level. This level was resistance in the Spring of 2017 and support throughout the Summer of 2017.

Utilities  (XLU) have broken their recent downtrend and are consolidating just above the $52 level.


DISCLOSURE: I currently have no positions in these ETFs.


The views and opinions expressed in this article are those of the authors, and do not necessarily represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG