Skip to main content

S&P 500 - sector analysis shows more room for gains

In the process of scanning all the stocks on the NYSE, the AMEX and the NASDAQ this weekend, we have gathered the results of technical analysis on the stocks that comprise the S&P 500. The data is summarized in the following table.

S&P 500
Industry Sector
Aroon - UP Trend % Aroon UP Trend DMI - UP Trend % DMI - UP Trend 20-day MA above 50-day MA % 20-day MA above 50-day MA Total Stocks in Sector
Consumer Discretionary 29 34% 17 20% 45 52% 86
Consumer Staples 18 45% 12 30% 24 60% 40
Energy 32 89% 18 50% 33 92% 36
Financials 16 18% 11 12% 44 48% 91
Health Care 20 38% 9 17% 25 48% 52
Industrials 28 50% 26 46% 43 77% 56
Information Technology 43 61% 34 48% 60 85% 71
Materials 16 57% 6 21% 21 75% 28
Telecom Services 5 56% 5 56% 8 89% 9
Utilities 13 42% 17 55% 27 87% 31

Consumer Discretionary has been in rally mode since March but the numbers now seem to indicate that the sector is on the wane. Though the moving averages indicate the sector is in decent shape, Aroon and DMI indicate that up-trends are weakening or reversing.

The situation in the Financials is even worse. Again, the moving averages indicate the sector is in decent shape, but Aroon and DMI indicate that sustained up-trends are few and far between.

With oil prices where they are it is no surprise to see the Energy sector hitting on all cylinders. The sense of the sector being over-bought is strong, however, and the DMI number shows a potential weakening in trend.

Consumer Staples are turning in a mediocre performance and Health Care can't seem to get going. The fact that these two sectors, often thought of as refuges in times of declining markets, may be a strong indicator that stocks are not yet in a bear market. The numbers in the table bear this out.

Tech and the NASDAQ have been outperforming recently and we can indeed see trend and moving average numbers that support this.

Interestingly, Telecom Services is second only to the Energy sector in terms of percentage of stocks in an up-trend and with bullish moving averages.

All in all, the sectors in the S&P 500 appear to be in decent shape with the exception of Financials and Consumer Discretionary. With the further exception of the Energy, Telecom and Utilities sectors, there seems to be plenty of room for further gains without hitting levels of being over-bought.


Popular posts from this blog

Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation

Thursday Bounce: Trend Busters, Swing Signals and Trend Leaders for July 9, 2009

This is a quick post to announce that we have published Thursday's Trend Leaders, Swing Signals and Trend Busters at Alert HQ . All are based on daily data. Today we have the following: 72 Swing Signals -- A couple of days ago we had 35 signals, today we have twice as many. Happily, we now have 65 BUY signals, a mere 4 SELL Signals plus 3 Strong BUYs. Whoo-hoo! 56 Trend Leaders , all in strong up-trends according to Aroon, MACD and DMI. There are 18 new stocks that made today's list and 60 that fell off Tuesday's list. 48 Trend Busters of which 5 are BUY signals and 43 are SELL signals The view from Alert HQ -- Talk about mixed signals. If you look at our Swing Signals list you would think the market was in the middle of a big bounce. BUY signals are swamping the SELL signals and we even have a few Strong BUYs. Yes, there's a good sprinkling of tech stocks and tech ETFs but the distribution is pretty broad-based with a good number of different sectors represented, eve

Trade Radar gets another update

Some of our data sources changed again and it impacted our ability to load fundamental/financial data. In response, we are rolling out a new version of the software: 7.1.24 The data sourcing issues are fixed and some dead links in the Chart menu were removed. So whether you are a registered user or someone engaged in the free trial, head over to our update page and download the latest version. The update page is here: Contact us if you have questions or identify any new issues.