Sector Analysis

The Bull Keeps Stampeding! Many pundits keep claiming that the move off the lows is nothing more than an a "bear market rally". Well whether this rally is a bear rally or the start of a new bull off a cyclical low history will write the final outcome. For those of us that trade on a daily basis must see the current action for what it is and not what we want it to be to fit some pre-conceived mold of our view (a.k.a. Bias).

That said, the spreadsheet above highlights the Dow Jones Industrial's Component Stocks on the right side and the S&P 500 Sector and Industry Groups on the left side. Additionally, the columns also show whether the particular instrument is Bullish or Bearish and the length in terms of days. It is clear that the major sectors and industries remain firmly bullish albeit overbought in length and technical condition, but there is no denying the strength of the recent rally.

How much further can price move higher without a significant correction nobody has a clear answer. As traders we must continue to take our signals from what the markets are telling us, hence keeping watchful eye on the bullish or bearish condition of the various sectors and industries is most important.

Good Trading