S&P 500 Sector SPDRs Preview - January 29th, 2019

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

In financial markets, there are certain price levels that are more significant than others with regards to the amount of supply and demand that exists at them.

In financial markets, prices are always doing one of three things.  They are either going up, going down, or staying the same. 

BHT utilizes a process and methodology that has been developed over twenty years in order to identify these levels and price trends. 

BHT does not utilize many of the traditional Technical Analysis Techniques such as Gann Theory, Harmonic Patterns, or Elliot Waves.  

BHT questions and doubts the validity of many of these techniques and believes they are in the realm of Bigfoot and UFOs.  


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 SPDRs PREVIEW - JANUARY 29TH, 2019 pdf


S&P 500 – The SPYs broke their recent uptrend two weeks ago and have been trading sideways since then.  The top of the range has been around $266 and the bottom has been around $262.  If the lower side of the range breaks, and the $260 level breaks, we could see another meaningful selloff.  The $260 level has been important over the past year.  It is interesting to note how precise of a trading level $263 has been over the past three months.

Technology – The XLKs broke the resistance around $63.50.  This level is now support.  It is an important level because it is where the recent lows were in February, April, and November.  They have broken their recent uptrend and are trading sideways.

Financials – The XLFs broke the $25 level and are now consolidating just under $26.

Healthcare – The XLVs broke important resistance around the $86.50 level three weeks ago.  There was resistance at this level because it was resistance in February and March and support in July and again in October.  They have been consolidating between $88 and $90.

Consumer Discretionary – The XLYs have spent the last three weeks consolidating around the $106 level.  They traded right through the $98.50 level during the recent rally.  This level is where the lows were last February and again in April.  There may now be some short-term support at this level but its importance longer-term has probably been diminished.

Industrials – The XLIs are testing important resistance around the $71 level.  There is resistance around this level because it was where the lows were in late 2017, and in the Spring and Summer of 2018. 83d=56a0eb2958

Consumer Staples – The XLPs are consolidating around the $52 level.  There is resistance around this level  because it is where the recent lows were in October.  They recently found support around the very important $50 level.  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. 

Consumer Staples Long-term – The XLPs found support again around the very important $50 level.  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 have broken their recent uptrend and are trading sideways.  If they head higher there will probably be resistance around the $66.50 level.  This is where the recent resistance was and it was also support in early 2018.

Energy Long-term – The XLEs recently found support near levels that were the lows in early 2016.

Materials – The XLBs are testing resistance around the $54 level.  This level was resistance in the Spring of 2017 and support throughout the Summer of 2017.

Utilities – The XLUs have broken their recent downtrend and are consolidating just above the $52 level.  There is support around this level because it was resistance last April and support in July and August.