Industrials for the past few months had been awesome but now starting to look like a dog with fleas, best to stay away in the near term. Healthcare sneaking up from the bottom ranks to the middle of the pack. First time in a while where our expectations do not favor tech stocks controlling the top spots. When the general market finally moves we may see unusual sectors, such as utilities and healthcare, emerge as leaders.


Market: XLI (Industrials ETF)

Reason for observation: Daily bear flag trigger

Short-term bias: Bearish

Long-term bias: Bullish

Sharp one day sell off in Industrials, money definitely starting to flow out of this sector. Best to avoid industrial names for the time being, if anything maybe look for weak names and short them.


Market: XLU (Utilities ETF)

Reason for observation: Change of character

Short-term bias: Neutral

Long-term bias: Bullish

Failure of the weekly bear flag and now pressing into the upper Bollinger band on the daily. Worth keeping an eye on utes going into next week, something may be brewing here.


Utes and healthcare, two sectors trying to play some catch up performance to the general market.