S&P 500 Sector SPDRs Preview - March 17th, 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 - MARCH 17TH, 2019

S&P 500 – The SPYs sold off in early March but the have since rebounded and continue to consolidate around the important $280 level.  They are overbought so expect continued consolidation.

S&P 500 – The SPYs have broken their recent uptrend and are consolidating just above the important $280 level.  The $280 level was resistance last March, June, and again from October through December.  It was also support throughout last July.

Technology  – The XLKs gapped up after breaking through the $70 - 72 resistance zone.  The last four times that they were this overbought – last July, August, October and again in February, a large selloff followed. The may be support around the $72 level because it was the top of the recent resistance zone.

Financials – The XLFs continue to consolidate between the $26 and $27 levels.  They have been trading in this range for more than two months.  The $26 level was support in March of 2017 and July of 2018.  They are slightly overbought.

Healthcare – The XLVs sold off meaningfully on March 6th after breaking their recent uptrend.  The large move downwards was attributed to concerns over socialized healthcare.  They have since rebounded and are consolidating around the $92 level.

Consumer Discretionary – The XLYs are slightly overbought and testing resistance around the $111 level.  This is where the recent highs were in early December.

Industrials – The XLIs are consolidating after becoming overbought and breaking their recent uptrend.  Longer-term, there may be resistance around the $80 level because it is where the highs were In January and September of 2018.  There may be support again around $71 because it is where the lows were in late 2017 and the first half of 2018.

Consumer Staples – The XLPs broke their recent uptrend and are consolidating around the $54.50 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 recently 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 continue to test resistance around the $66.50 level.  There is resistance around this level because it was support in early 2018.

Energy Long-term – The XLEs are testing resistance around the $66.50 level.  There is resistance here because it was support a year ago.  The $78 level is important long-term resistance.  The levels around $55 are important long-term support.

Materials – The XLBs are testing resistance around the $56 level.  This level was also resistance in November, December, and February.  If they head higher there may be resistance around the $58 level because this was the bottom of the range from last June through October.

Utilities – The XLUs are still trending higher, but they are overbought.  If they head lower there will probably be support around the $57 level because this is where the highs were in December.  In September and then again in late December and early January they found support around the $52 level.