S&P 500 Sector SPDRs Preview - April 26th, 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 SECTORS SPDRs PREVIEW - APRIL 26, 2019

S&P 500 – The SPYs are overbought and trading at levels that were resistance in the past.  There is resistance around the $293 level because it is where the top was in September and October.

S&P 500 – The SPYs are overbought and trading near levels that were resistance in the past. There is 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, from October through December, and again in February. It was also support throughout last July.

Technology – The XLKs broke the resistance around $76 but they are very overbought.  This level should now become short-term support.  There was resistance around the $76 level because this is where the highs were last August through October. 

Financials – The XLFs continue to trade above the important $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 broke their recent downtrend after becoming extremely oversold.  They are rallying off of support around $86.50.  This level was the top in March and the bottom in October of 2018.  A

Healthcare Short-term – The XLVs broke their recent downtrend after becoming extremely oversold.  They are rallying off of support around $86.50.  This level was the top in March and the bottom in October of 2018.

Consumer Discretionary – The XLYs broke the resistance around the $118 level.  This is where the October highs were.  They are very overbought so there will probably be some consolidation or profit-taking.  There will probably be some short-term support around $118.  If they break that and head lower there will probably be support around $111 because it was a resistance level from early December through March.  �

Industrials – The XLIs 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 bottom during this past May. 

Energy – The XLEs broke their recent uptrend and support around the $66.50 level.  This level had been resistance from February through early April before becoming support.  This level was also support in early 2018.

Energy Long-term – The XLEs could be breaking support around the $66.50 level.  This level 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 failed at resistance around the $58 level.  This level was the bottom of the range from last June through September.  They are now testing support around the $56 level.  There is support at this level because it was resistance from November through March.

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.