Saturday, November 22, 2008

Sector Update for November 22nd

Last week's update found the S&P sectors in moderate downtrends. A look at the current Technical Strength readings shows that the downtrends have intensified:

MATERIALS: -420
INDUSTRIAL: -280
CONSUMER DISCRETIONARY: -320
CONSUMER STAPLES: -300
ENERGY: -260
HEALTH CARE: -300
FINANCIAL: -460
TECHNOLOGY: -300

These are some of the weakest figures of the year. In the recent past (2007/2008), such extreme negative readings have tended to precede intermediate-term bounces. This last occurred late in October. I'll have more to say about this in Monday's indicator review.

Money flow was quite positive for all sectors on Friday, but the Dow Jones Industrial stocks still finished at -$165 million for the week. The weakest flow numbers were seen among the health care and consumer services stocks; the strongest readings came from telecommunications, energy, consumer goods, and utilities.

For the month, money flow was weakest for consumer services and financial stocks; strongest for telecommunications and health care. As has been the case for a while now, monthly money flow among Dow stocks remains in negative territory.
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