This week we saw the sellers take charge across the major North American market indices with the bears pushing down the SPY towards filling the unfilled gap @ 207.48.
At this point it’s important to remain flexible with direction as it’s possible that price continues to pullback towards the unfilled gap @ 201.92.
But if buyers step in and take out the descending trendline, we’ll back to all time highs and back to the races.
Meanwhile the VIX (the Volatility index) remains at depressed levels.
An unfilled gap exists at 17.70 which would be a natural target to fill in the short term, however with the VIX at these levels I still believe this is ultimately an environment which is favorable for equities.
This week all the sectors were hit hard with selling with the exception of the Utilities.
The charts on various sectors look very strong. Notably –
- Con. Discretionary, Con. Staples, Healthcare, Financials and Technology – all pulling back but still in an uptrend
- Utilities – neutral
- Builders, Energy, Industrials – broken down and looking weak. How does this portend for domestic growth?
The major sectors are posted here on Finviz for your viewing pleasure –