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 near levels that were resistance in the past. There will probably be resistance around the $293 level because it is where the top was in September and October.
S&P 500 – The SPYs are overbought and near levels that were resistance in the past. There will probably be resistance around the $293 level because it is where the top was in September and October. If they head lower there will probably be support around $280. 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 are overbought and testing important resistance. There is resistance 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 hit resistance around the $27 level. They are slightly overbought. The levels between $27 and $27.50 have been the top of the range since November.
Healthcare – The XLVs are at the bottom of the range that they have been in since February. The action over the past two days has been very weak. If they head lower there may be support around $86.50. It was the top in March and the bottom in October of 2018.
Consumer Discretionary – The XLYs testing resistance around the October highs. They are very overbought so there will probably be some consolidation or profit-taking. If they head lower there will probably be support around $111 because it was a resistance level from early December through March.
Industrials – The XLIs broke their short-term downtrend and are consolidating around the $77 level. 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 are testing resistance around the levels that were the highs at the end of last year. They are slightly overbought. 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.
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 seem to be breaking the resistance around the $66.50 level. This level has been resistance for the past two months. There is resistance around this level because it was support in early 2018.
Energy Long-term – The XLEs could be breaking 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 $58 level. This level was the bottom of the range from last June through September. They are very overbought. The last two times that they were this overbought, in September and February, a selloff followed.
Utilities – The XLUs broke their recent uptrend after becoming overbought and are consolidating. There is 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.