S&P 500 Sector SPDR Preview - September 19th, 2018

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

BHT utilizes Technical Analysis to identify 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 SECTOR SPDR PREVIEW - SEPTEMBER 19TH, 2018 PDF




S&P 500 – Despite all of the recent hysteria in the news about the Turkish Lira and Trade Wars the SPYs have traded to all-time highs over the past few weeks. They have been consolidating just above support at the $286 level. The top of the range has been around the $291.50 level. There is support around the $286 level because it was resistance earlier in the year. If they head lower the next level of support will probably be around the $280 level because it has been an important level this year.


Technology – The XLKs have been consolidating between the $73 and $75 levels since making all-time highs in late August. This sector is 28% of the S&P 500 makeup.


Financials – The XLFs continue to trade around the important $28.25 level.  This has been the top of the range since March.  The bottom of this range has been around the $26.80 level so there may be some support there again if they head lower.  It is important to note that they did not participate in the recent rally.  This sector is 14% of the S&P 500 makeup.


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 – The XLVs have been consolidating between $93 and $94.  They are overbought.  There has been support around the $92 level.  It was the top in January.  This sector is 14% of the S&P 500.

Consumer Discretionary – The XLYs are consolidating near all-time highs.  The top of the range has been around $117 and the bottom has been around $114.  There was support around the $110 level because it was the top of the range at the end of June and in early July.  There will probably be support there again if they head lower.  This sector is 13% of the S&P 500.

Industrials – The XLIs are trending higher but they are overbought.  They will probably run into resistance around these levels because they were the highs in January.   This sector is 10% of the S&P 500.

Consumer Staples – The XLPs broke their recent uptrend and are consolidating between $53.50 level and $55.  Longer-term, if they head lower there will most likely be support around the important $50 level. This sector is 7% of the S&P 500.

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 May.

Energy – The XLEs are trending higher and are back above the $74 level.  It seems that this level isn’t important anymore.  The two most recent lows have been right around $72 so there may be support there again if they head lower.  This sector is 6% of the S&P 500.

Energy Long-term – The XLEs failed at the $78 level in mid-May and more recently on July 10th.  This is where they found resistance in January.  They also hit resistance and rolled over at this level in December of 2016.

Materials – The XLBs broke the top of their recent range but they are overbought.  If they head higher there will probably be resistance around $61.50 because it was the top three times earlier this year.  The will probably be support around $60 because it was the top of the recent range.  This sector is 3% of the S&P 500.

Utilities – The XLUs are consolidating around the $54 level.  Short-term, there has been support around $52.  If they 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.  This sector is 3% of the S&P 500.