The S&P 500 remains neutral within its trading envelope. Financials, health care, and telecom are oversold. Health care and telecom are within 2% of their most oversold levels in the past twelve months. Despite remaining neutral, staples are nearing the bottom of their range and are within 2% of their extreme oversold level.
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The energy sector is overbought (0.7% above its top TE). The sector is being buoyed by stocks such as Baker Hughes (BHI), CONSOL Energy (CNX) and EQT that outperformed yesterday-- despite the market pullback.
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Below is the Birinyi Sector Timing Model for the energy sector along with the rest the sectors and the market.
