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 – The SPYs are overbought and approaching levels that have been resistance in the past so I would expect some near-term consolidation. The $280 level was resistance last March, June, and again from October through December. It was also support throughout last July.
Technology – The XLKs are slightly overbought and approaching levels that were resistance in the past. In October and November they ran into resistance in the $70 – 72 range. These levels were resistance during last March and support in June and July as well.
Financials – The XLFs continue to test resistance around the $26 level. They have been testing this level for the past month. They are overbought. The $26 level was support in March of 2017 and July of 2018.
Healthcare – The XLVs continue to trend higher but they are overbought. Longer-term, there will probably be resistance around the $96 level because that is where the recent highs were. There will probably be support around the $86.50 level because it has been an important level over the past year.
Consumer Discretionary – The XLYs are overbought and near the levels that were the recent highs in early December.
Industrials – The XLIs are trending higher but they are overbought. Longer-term, there may be resistance around the $80 level because it is where the recent highs were.
Consumer Staples – The XLPs are consolidating just above the $53.50 level. 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 are testing 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 continue to test 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 rallied +8% in the past month after once again finding support around the $52 level. There is support around this level because it was resistance last April and support in July and August.