Pretty massive money flow this week. A lot of our projections are changed. Money flow out of the classic “risk on” sectors such as tech and consumer discretionary. Mean reversion in beatdown sectors such as industrials, financials and materials is apparent. Furthermore, sectors such as energy and utilities, while low in rankings, show chart patterns with potentially large upside potential. Watch for these large sector gyrations to persist in the near term.


Market: XLI (Indsutrials ETF)

Reason for observation: Strength off lows

Short-term bias: Bullish

Long-term bias: Bullish

Money flow quickly coming back to industrials. A move above the 77ish level would be a big indicator that leadership in industrials is returning once again.


Market: XLU (Utilities ETF)

Reason for observation: Daily bull flag setup

Short-term bias: Bullish

Long-term bias: Bullish

In the fray of other sector rotation, do not forget about this large daily consolidation in utes looking ready to explode higher.


Industrials, financials and materials all screaming back off of relative lows. Some mean reversion for sure in sectors that have lagged severely for the past few months.


Discretionary/staples ratio rolling over to the downside. Further evidence of the shifts we are seeing in U.S sectors.