Sector Watch: Resistance Headwinds Starting To Emerge

Old and broken trend lines are trying to stall out the current market rally. The market is trying to sell off, though since the 2:30 turn, the bulls have been on an ungodly buying spree, wiping out half of the day's losses, and inspiring the bulls that the worst may be behind it. Where this market goes next week, is a hard call to make. The 200-day moving average held strong, when in the recent past, it really didn't give much of a rip about it. 

Overall on the sectors, they have all seemed to experience a strong bounce off of their October lows, however, many of the sectors are hitting up against serious resistance from their long-term trend-lines that they broke on the way down. It will be interesting to see next week, whether those areas of resistance holds off any additional attempts to rally this market higher. 

Here's what I see as the top 3 sectors right now:

  1. Staples
  2. Utilities
  3. Healthcare

The 3 worst sectors are:

  1. Materials
  2. Industrials
  3. Financials 

Let's review the sectors:

Basic Materials (XLB)

xlb 1

Energy (XLE)

xle 1

Financials (XLF

xlf 1

Industrials (XLI)

xli 1

Technology (XLK)

xlk 1

Consumer Staples (XLP)

xlp 1

Utilities (XLU)

xlu 1

Health Care (XLV)

xlv 1

Consumer Disretionary (XLY)

xly 1

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