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 have broken their recent uptrend and continue to consolidate. They have moved an aggregate total of two points over the past three weeks. Momentum is neutral so this consolidation will probably continue in the near-term.
S&P 500 – The SPYs have broken their recent uptrend and are consolidating around resistance at the $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 are overbought and at the top the $70 - 72 resistance zone. The last three times that they were this overbought – last July, August, and again in October, a large selloff followed. In October and November they ran into resistance around these levels. These levels were also resistance during last March and support in June and July as well.
Financials – The XLFs are consolidating just above support around the $26 level. They have been trading around this level for two months. The $26 level was support in March of 2017 and July of 2018.
Healthcare – The XLVs have broken their recent uptrend and are consolidating. Longer-term, there will probably be resistance around the $96 level because that is where the recent highs were. There may be support around the $86.50 level because it has been an important level over the past year.
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 recent highs were. �
Consumer Staples – The XLPs broke their recent uptrend and 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 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 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. P7
Materials – The XLBs have broken their recent short-term uptrend and are starting to trend lower. There may be support around $54. This level was resistance in the Spring of 2017 and support throughout the Summer of 2017. 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 have rallied almost 10% in the past two months 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. They are now testing resistance around the $57 level. There is resistance there because it is where the top was in December.