S&P 500 Sector SPDR Preview - July 1st, 2018

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 - The SPYs have been consolidating over the past week.  They are still in the downtrend that began three weeks ago. 

Technology - The XLKs gapped down after breaking support at the $71 level.  They have consolidated over the past week.  There was support around the $71 level because it was the previous all-time high in March. 

Financials - The XLFs have been range bound since March, but now they appear to be breaking the lower side of the range. 

Healthcare - The XLVs have been consolidating just under the $84 level. 

Consumer Discretionary - The XLYs have been trending lower since making all-time highs two weeks ago.  There will probably be support around he $107 level because it was the top in February and March.

Industrials - The XLIs are testing support around the $71 level.

Consumer Staples - The XLPs are consolidating above the important $50 level.  This level was the low in 2016, and the top of the range throughout 2015. 

Energy - The XLEs failed at $78 after becoming overbought in mid-May.  This is the same level that they found resistance at in January.  The recent lows have been at $74.  They continue to be rangebound. 

Materials - The XLBs trended lower after breaking support at the $60 level.  There was support there because it was the top in April and May.   They are now consolidating around the $58 level.  This level was the low last month.

Utilities - The XLUs have trend higher since finding support around $49, but they are now overbought and testing resistance at $52.  This was the high in April.

 

S&P 500 – The SPYs have been trending lower since the middle of June but they have consolidated over the past week.  The low on Thursday was at $268.  This was the same level  as the low on May 29th.   The lows this year have been around the $260 level.  The recent all-time high in late January was around the $286 level.

 

Technology – The XLKs gapped down after breaking support at $71.  They have consolidated over the past week.  There was support around the $71 level because it was the previous all-time high in March.  Short-term, there is support around the $68.60 level.  This was the bottom of the range throughout May.  This sector is 28% of the S&P 500 makeup.

 

Financials – The XLFs have been range bound since March, but now they appear to be breaking the lower side of the range.  The last three times they traded down to levels around $26.80, in late March / early April, and then again twice in May, they rallied.  This sector is 14% of the S&P 500 makeup.

 

Healthcare – The XLVs have been consolidating just under the $84 level.  If they break this and go higher there will probably be some resistance around the $86.50 level because it was the top in February and March.  There is resistance around $84 because it was the top of the recent range.  If they go lower there will probably be support around $80 because it was the bottom of the recent range.  This sector is 14% of the S&P 500.

 

Consumer Discretionary – The XLYs have been trending lower after making all-time highs in mid-May.  There will probably be support around the $107 level because it was the top in February and March.  It was also the level from which the most recent rally started.  The recent lows in February and April were around the $98 level.  This sector is 13% of the S&P 500.

 

Industrials – The XLIs have been trending lower since failing at resistance around the $76.50 level.  This had been the top since mid-April.  They are now oversold and testing levels that were support previously.  The recent lows in November, February, and early May were around the $71 level.  There could be a bounce soon.  This sector is 10% of the S&P 500.

 

Consumer Staples – The XLPs continue to consolidate just above the important $50 level.  This level was the low in 2016, and the top of the range throughout 2015.  It was also the top throughout May and early June.  This sector is 7% of the S&P 500.

 

Energy - The XLEs failed at $78 after becoming overbought in mid-May.  This is the same level that they found resistance at in January.  They also hit resistance and rolled over at this level in December of 2016.  They just found support again around $74, which was also the low at the end of May.  There is support here because it the top in late April.  Now they are in the middle of that range.  This sector is 6% of the S&P 500.

 

Materials - The XLBs trended lower after breaking support at the $60 level.  There was support there because it was the top in April and May.  They are consolidating around the $58 level.  This is where they found a low  last month.  This sector is 3% of the S&P 500.

 

Utilities – The XLUs have trended higher since finding support again around the $49 level.  This has been the bottom of the range since March.  They are now overbought and testing resistance at $52.  This was the top in April.  This sector is 3% of the S&P 500.