Finally some sector rotation worth discussing. Energy holding the top spot now. Tech and materials bumping up 6 spots is significant. Consumer discretionary, consumer staples and financials moving lower to the bottom ranks. Most of these moves are inline with our analysis below.
Market: XLE (Energy ETF)
Reason for observation: Break of daily consolidation
Short-term bias: Neutral
Long-term bias: Neutral
Energy names following crude’s movements to the upside. However, not really anything to get too excited about just yet.
Market: XLF (Financials ETF)
Reason for observation: Daily bear flag setup
Short-term bias: Bearish
Long-term bias: Bullish
Fins definitely looking ready to move lower. Do not want to be buying weakness in financial stocks.
A clear visual of energy stocks beginning to outperform the general market. That strength is noted.
Bulls definitely want to see this ratio start to head higher again. Should the general market rally this risk on indicator will likely follow.