Sector rankings still in-line with expectations.


Market: XLE (Energy ETF)

Reason for observation: Weekly bull flag setup

Short-term bias: Bullish

Long-term bias: Bullish

Weekly bull flag setup is still in play, could see a multi-week rally in energy stocks should the pattern resolve.


Market: XLF (Financial ETF)

Reason for observation: Lack of price rejection

Short-term bias: Bearish

Long-term bias: Bullish

Would have wanted to see a quick move away from the breakdown area but this price action suggest bears are still very much in control. Do not buy weakness in financials.


Tech and consumer discretionary are still the top dogs in the U.S sector arena. Compare that relative performance to the severe under-performance of financials.