Good morning,
Today’s Overtime is a weekly look at where the eleven S&P 500 sectors stand as we head toward the most bullish three-quarter stretch of the Presidential Cycle.
And while we’re focusing on the big picture and looking at weekly charts, Monday’s move has made an undeniable impact. It broke QQQ out from a multi-month downtrend line, and took out a similar line in technology, as today’s report will show.
One of the big-picture takeaways is that a lot of sectors are in dumps and experiencing more than some sideways chop over the last few months. But at 39% of the S&P 500, as technology goes, the index goes.
Today’s charts are ordered by proximity to their 52-week high, a rough measure of relative strength, and begin with the technology sector.
Technology
Technology stocks surged to start this week, breaking out from a downtrend line that stretches back to early June. Don’t overthink this one. If we’re above last week’s close ($189), the base case is to and through all-time highs
Energy
Energy is pulling back over the past two weeks and is retesting its recent base-on-base breakout. A move below $62 could be considered a false breakout, but right now it deserves the benefit of the doubt in absolute and relative terms.
