S&P 500 Sector SPDRs Preview - November 3rd, 2018

S&P 500 SECTOR SPDRS PREVIEW - SPY XLK XLF XLV XLY XLI XLP XLE XLB XLU

S&P 500 SECTOR SPDR PREVIEW - NOVEMBER 3RD, 2018 PDF

S&P 500  – The action in the SPYs played out just as we expected it would.  They found support last week right at the $260 level.  There was support there because it is where the lows were from February through May.  It is important to watch the $270 level.  It has been support over the past week.  There is support there because it is where the lows were in May and June.  It will probably continue to be support in the short-term.  There will probably be resistance around the $280 level.  This level was resistance in February, March, June and last month, and it was support in July.     

S&P 500  Short-term – It is important to watch the $270 level.  It has been support over the past week.  There is support there because it is where the lows were in May and June.  It will probably continue to be support in the short-term.  There will probably be resistance around the $280 level.  This level was resistance in February, March, June and last month, and it was support in July.

Technology – After being very oversold, the XLKs are trading just above the $68.60 level.  There is support at this level because it is where the lows were in May and June.  There will probably continue to be some support there in the short-term.  There has been resistance around the $71 level. 

Financials – The XLFs found support around the $25 level.  This level was resistance in March and July / August of 2017.  It is also important psychologically.  There is resistance around the $26.40 level because this level was support in June and again in early October. 

Financials short-term – The XLFs found support around the $25 level.  This level was resistance in March and July / August of 2017.  It is also important psychologically.  There is resistance around the $26.40 level because this level was support in June and again in early October. 

Financials Long-term – In January the XLFs failed at the same levels that they did when they peaked in 2007 before the crash.  Markets do indeed have long-term memories and this clearly illustrates it.  If the XLFs rally to this level they will probably run into significant resistance there once again. 

Healthcare – As expected, the XLVs found support around the 85.50 level.  There is support at this level because it was resistance in February and March, and support in July.   There will probably be resistance around the $92 level because it was the top in January and support in September.   They have broken their recent downtrend.

Consumer Discretionary – The XLYs broke their recent downtrend and resistance at the $107 level.  There will probably be support at this level because it was resistance in March and February and support in October.  There is resistance around the $110 level because it was resistance in June, support in August, and resistance again in October. 

Industrials – The XLIs broke their recent downtrend and resistance around the $71 level.  This level was the low at the end of last year and again in May and June.  It will now probably be a short-term support level. 

Consumer Staples – The XLPs are consolidating around the $55 level.  If they head lower they will probably find support around $53.50.  $53.50 is an important level because it was support in February and March, and resistance in April.  It was also the bottom of the range from August through October.  Longer-term, if they head lower there will most likely be support around the important $50 level. 

Consumer Staples Long-term – Longer-term, it is important to watch the $50 level in the XLPs if they head lower.  This level was the low in 2016, and the top of the range throughout 2015.  It was also the top of the range during this past May.

Energy – The XLEs found support around the same levels that were support in February, March, and April.  The $66.50 level will probably continue to be support in the short-term, and there will probably be resistance around the $72 level.  This is where the bottom was in August and September.   

Energy Long-term – The $78 level is an important long-term resistance level for the XLEs.  They failed there once again last month.  The $66.50 level has been important support.

Materials – The XLBs broke their recent downtrend and resistance around $53.50.  There is resistance there because it was resistance in the first half of 2017, and support in the second half.  It will now probably be a support level.   There should be resistance around the $58 level because it was support in June, July, and August.

Utilities – The XLUs have been consolidating since they broke their recent uptrend.  If they eventually break $52 and head lower longer-term, there will probably be support around the $49 level because it was the bottom of the range from February through June.