US Sector Update: Thursday, June 21, 2012

From that low point on June 4th, the general market has rallied, and from our short-term view has the potential on this move to see up to 1400 on the S&P 500.  But that prognostication is not something to bet the house on.  The good news is that the defensive sectors have cooled off some.  Also, it is interesting to see that the large-cap stocks in the S&P 500 have moved up with more gusto than those in the mid-cap category, which you can see in the tables below.

For each sector except Consumer Staples and Financials, the bounce-back by the stocks trading above their 50-day moving average has been stronger in the S&P 500 sectors than in the S&P 400 sectors.

Some of the other highlights from this week's sector studies include:
  • Financials took a hit this week.  They seem to have peaked out a couple of weeks ago.
  • Healthcare continues to show some strength with another strong reading this week, pushing the sector into the top three group.
  • Utilities showed a little weakness in the short-term readings this week.
  • Technology is bouncing off its lows.

Don Hays

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