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 sold off in early March but have since rebounded and continue to consolidate around the important $280 level. There is resistance just overhead in the technology and financial sectors so the consolidation will probably continue in the near-term.
S&P 500 – The SPYs continue to consolidate around the important $280 level. The $280 level is important because it was resistance during last March, June, and again from October through December. It was also support throughout last July.
Technology – The XLKs have broken their recent uptrend after becoming overbought. There should be resistance just overhead around the $76 level because this is where the highs were last August through October. If they head lower there will probably be support around the $72 level because it was the top of the recent range.
Financials – The XLFs traded between the $26 and $27 levels for more than two months. The $26 level was support in March of 2017 and July of 2018. It has been broken to the downside and will now probably be a resistance level.
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 consolidating after breaking resistance around the $111 level. There was resistance at this level because it is where the recent highs were in early December. It will now probably be a support level.
Industrials – The XLIs are consolidating around the $74 level 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 out of their recent range and are trending higher. They will probably run into resistance around the levels that were the highs at the end of last year. They found support around the $50 level during the selloff at the end of December. 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 continue to test 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 hit resistance again around the $56 level. It has been the top of the recent range. This level was also resistance in November, December, and February. If they break $56 and head higher there may be resistance around the $58 level because this was the bottom of the range from last June through October. The bottom of the recent range has been around $54.50.
Utilities – The XLUs broke their recent uptrend after becoming overbought. If they head lower there will probably be support again around the $57 level because this is where the highs were in December. It was support last week. In September and then again in late December and early January they found support around the $52 level.