US $Sector Monthly Update

US $Sector Monthly Update.   Sector Rotation is key in the institutional world.  As a result, we analyze the 10 Major US $Sector every month.   This month is critical because it is end of quarter too.  We will cover the following sectors in this article:

  • XLK -> Technology
  • XLI -> Industrial
  • XLF -> Financial
  • XLB -> Materials
  • XTL -> Telecomm
  • XLV -> Healthcare
  • XLU -> Utilities
  • XLY -> Consumer Discretionary
  • XLP -> Consumer Staples
  • XLE-> Energy

Here is the summary of the analysis:

2017-03-31_171422_summary

Note;  All charts are provided by TradingView with the IMTF™ Indicator

XLF: Technology Sector

 Below is the weekly chart.   Price is in a strong major bullish trend that yet to go through a major pull as of yet.   The trend started July 2016.    The minor support is 51.79 and the minor resistance is 53.47.

2017-03-31_141135_XLK

Here is the daily chart:

2017-03-31_141751xlk_d

XLI: Industrial Sector

Below is the weekly chart.   Price is in a strong major bullish trend that yet to go through a major pull as of yet.  It is trying to go through a medium pull back now.

 The trend started July 2016.    The support is at 63.36.    The major resistance is at 66.23.   Price is at a minor resistance right now.    If it breaks it, there will be a high probability of retesting the high and continuing the trend.

2017-03-31_142002xli_w

Here is the daily chart:

2017-03-31_142411xli_d

 

XLF: Financial Sector

Below is the weekly chart.   Price is in a strong major bullish trend that yet to go through a major pull as of yet.  It is trying to go through a medium pull back now.

 The trend started Oct 2016.    The support is at 22.99.    The major resistance is at 24.95 with a minor resistance 24.08.

2017-03-31_142911xlf_w

Here is the daily chart:

2017-03-31_144058_xlf)d

 

XLB: Materials 

Below is the weekly chart.   Price is in a strong major bullish trend that yet to go through a major pull as of yet.  It is trying to go through a medium pull back now.

 The trend started Nov 2016.    The support is at 50.89.    The major resistance is at 52.83.  Notice this week, it broke the minor resistance at 52.26.

2017-03-31_143820xlb

Here is the daily chart:

2017-03-31_144017xlb)d

XTL: Telecomm

Below is the weekly chart.   Price is in a strong major bullish trend that yet to go through a major pull as of yet.  It is trying to go through a medium pull back now.

 The trend started July 2016.    The support is at 69.88.    The major resistance is at 73.10 with minor resistance at 71.62.   Notice, price has been consolidating around the support and even closed below it one week.   This is showing some signs of weakness where it can possibly get the medium pull back support (green line).     This is the weakest of the sectors that we have found that are going through a medium pull back

2017-03-31_144419telecom_w

Here is the daily chart:

2017-03-31_144509_xtl

XLV: Healthcare

Below is the weekly chart.   Price is in a bullish consolidation pattern.   Couple of weeks ago, it retested the major resistance 75.96, the top of the consolidation pattern.

The major support is 72.33 which is the middle of the consolidation pattern.    The resistance is 76.00.   If this support holds and we go back to retest the major resistance, we can possible break it and start a bullish trend.    If the support is broken, we will have a high probability to get to 69.32.

2017-03-31_144957_h_W

Here is the daily chart.  Notice, price is stuck at a daily resistance now.    If that holds, we are going back to the support of 72.33.   If not, we will retest the high and possibly break it to start a trend.

2017-03-31_145041xlvd

XLU: Utilities

Below is the weekly chart.   Price is in a bullish trend continuation pattern.  November 2016, it went through a major pull back.    Now, it is trying to retest the high.

The major support is 50.19 and major resistance is 52.78.   However, a minor support has developed around 51.31.   If this support holds, there is high probability to retest the high.   If it doesn’t, there is high probability for price to reach the support and possible break it to enter a consolidation pattern.

Since the instrument has gone through a major pull back, the probabilities are low to break the last high but we have to monitor the lower time frame to look for confirmations.

2017-03-31_164645xluw

Here is the daily time frame.   The daily time frame looks bearish but has not followed through going down yet.     It has a high probability of going through a major pull back to the cloud within this time frame.

2017-03-31_164750xlud

XLY: Consumer Discretionary

Below is the weekly chart.   Price is in a major bullish trend.       The trend started November 2016 and has yet to go through a major pull back.  In fact, it has not even gone through a medium pull back yet.

The major support is 86.00 with a resistance at 89.29.

2017-03-31_165446xly_w

Here is the daily time frame.  The daily is supporting the weekly with a minor support at 86.88.

2017-03-31_165738xly_d

XLP: Consumer Staples

Below is the weekly chart.   Price is in a bullish tend continuation pattern.   It went through a major pull back in November 2016 and is now trying to retest the high.

The major resistance is 55.50 with a minor support at 53.87.    As long as the minor support holds, there is high probability to break the high and the trend continue.     If the support breaks then there is high probability we will enter a consolidation pattern.

2017-03-31_170108_xlp_w

Here is the daily time frame.   The daily has a minor resistance level at 54.96 which is help pushing price to the support at 53.88.   Since that support is in the daily cloud, there is not good for the bulls.

2017-03-31_170327xlp_d

XLE: Energy

Below is the weekly chart.   Price is in a consolidation pattern.   Initially, it started a bullish trend but failed to follow through when it broke the support at 72.77.     Since the bullish trend failed, it now has a high probability to consolidate.

The major resistance is 72.77 with a major support at 66.96.

2017-03-31_170659xle_w

Here is the daily time frame.  The charts look bearish but a support has developed around 69.35 which has stopped price from going down.     Therefore, you have a battle between the bullish and bears.

2017-03-31_170957xle_d

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About the Author Manesh Patel