Both of these sectors are beginning to roll over and that has kept the broad market S&P 500 (NYSEARCA:SPY) spinning its gears and looking vulnerable. stock market updates
I mentioned in the last couple of updates that the S&P 500 had reached 2 standard deviations above its 13 month MA which is indeed thin air territory. Perhaps yesterday’s sell-off is the start of a pullback…
We have backed away from it a bit and I still am of the opinion that the highs are in for this month.
An early recipient of inflows in this latest rotation appears to be the unloved energy sector, particularly large integrated companies such as Exxon Mobil (NYSE:XOM) and Schlumberger (NYSE:SLB). Again this is very early in the rotation and caution should still apply but I am building positions in the following:
Again these are starter positions on a sector I think will do well in the next couple of months.
Rotation is the lifeblood of the bull market. I wanted to put out a few sector charts to highlight how some sectors are looking today.
Thanks for reading and trade safe!
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.