S&P 500 Sector SPDR Preview - June 13th, 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 after becoming overbought and running into resistance around the $280 level.  There is resistance here because it was the top in March.

Technology - The XLKs are consolidating around all-time highs,  There is support around the $71 level because it was the previous all-time high in March.

Financials - The XLFs rebounded after becoming oversold and finding support again around the $26.80 level in late May.  They are now in the middle of the range that they have been in since late March.

Healthcare - The XLVs have been trending higher since breaking out of their recent range.  There will probably be some resistance around the $86.50 level because it was the top in February and March.

Consumer Discretionary - The XLYs have traded higher since breaking the $107 level.  They are very overbought so I would expect some consolidation or profit taking here.

Industrials - The XLIs have been consolidating with short-term resistance around $76.50.  This has been the top since mid-April.

Consumer Staples - The XLPs are trading 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. 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 found support around $74, which was the top in late April.  Now they are in the middle of that range.  

Materials - The XLBs are consolidating after breaking above resistance at the $60 level.

Utilities - The XLUs are consolidating around the $49 level.  They found support here after becoming oversold in mid-May.

 

S&P 500 - The SPYs have been consolidating after becoming overbought and running into resistance around the $280 level.  There is resistance here because it was the top in March.  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 are consolidating around all-time highs,  There is support around the $71 level because it was the previous all-time high in March.  This sector is 27% of the S&P 500 makeup.

 

Financials - The XLFs rebounded after becoming oversold and finding support again around the $26.80 level in late May.  They are now in the middle of the range that they have been in since late March.  There is support around $26.80 and resistance around $28.35.  This sector is 15% of the S&P 500 makeup.

 

Healthcare - The XLVs have been trending higher since breaking out of their recent range.  There will probably be some resistance around the $86.50 level because it was the top in February and March.  There should be support around $84 because it was the top of the recent range.  This sector is 14% of the S&P 500.

 

Consumer Discretionary – The XLYs have traded higher since breaking the $107 level.  They are very overbought so I would expect some consolidation or profit taking here.   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 consolidating with short-term resistance around $76.50.  This has been the top since mid-April.  The recent lows in November, February, and early May were around the $71 level.  This sector is 10% of the S&P 500.

 

Consumer Staples – The XLPs are trading 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 found support around $74, which was 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 are consolidating after breaking above resistance at the $60 level.  There will probably be resistance at the $61.50 level because this was the top in February and March.  This sector is 3% of the S&P 500.

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Utilities – The XLUs are consolidating around the $49 level.  They found support here after becoming oversold in mid-May.  This level was also support in late March.  This sector is 3% of the S&P 500.