Overtime

Sector review

Good morning,

This week’s Overtime will provide a technical update on the 11 S&P 500 sectors. We’re using sector SPDR ETFs, looking at weekly candlestick charts for consistency, and showing the trend scores, broken down absolute and relative to the S&P 500, for an objective measure of strength.

A quick reminder that my trend score is a simple 0-4 scale, noting how many key moving averages (1, 3, 6, and 12-month) are upward sloping.

Finally, the charts are ordered by the total scores.

Let’s get into it!

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Technology

Trend Score (absolute): 4/4
Trend Score (vs. SPX): 3/4 (1-month negative)

Technology closed last week at 52-week absolute and relative highs, making it the strongest sector despite sharing the same total trend score as comm services. Clear base, breakout, and retest. $183 is first support.

Communication Services

Trend Score (absolute): 4/4
Trend Score (vs. SPX): 3/4 (3-month negative)

META may have fully retraced its decline, but XLC remains a long way from all-time highs. Still, the sector closed last week at 52-week highs and is trying to regain some relative momentum. First support from $69-$71.

Financials