Call toll-free 800.328.1267
This post is intended for educational purposes and should not be considered a trading recommendation.
Two sector funds may be on breaking out as bullish sentiment returns to the stock market.
The SPDR Materials ETF (XLB) and SPDR Healthcare ETF (XLV) spent the last 2-1/2 months below their trading ranges from mid-March. But yesterday both pushed above those levels and have found support above their 50-day moving averages. That could make some chart watchers think intermediate-term momentum has turned higher.
Gains have been fairly widespread for member stocks in both sectors, with few clear news catalysts. That may suggest broader programmatic buying as money flows back into equities. (Click here for our post on the bullish pattern in technology last week, and here for our alert on copper.)
Given the positive economic backdrop, there’s reason to think investors may seek value in other cyclical sectors that are still range bound. Those could be the SPDR Financial ETF (XLF) — especially with the Federal Reserve expected to raise interest rates next week — and SPDR Industrial ETF (XLI).
SPDR Health Care ETF (XLV) showing breakout through mid-March level. See yellow rectangle for moving-average crossovers.
Money is flowing back into stocks as investors hope for a better inflation report this week. The S&P 500 rose 1.9 percent between Friday, May 3, and Friday, May 10. It was the third straight positive week. More than...
Oracle jumped to new highs almost two months ago. Now, after a pullback, the software giant may have found support. The first pattern on today’s chart is the gap higher on March 12 after earnings surprised to the upside. ORCL retraced the move and is starting to...
Most of the big earnings reports have now occurred, and so far they've done little to boost the market. Companies like Microsoft (MSFT), Meta Platforms (META), Netflix (NFLX), Caterpillar (CAT) and Intel (INTC) reported profits above Wall Street estimates. However...