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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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Energy Sector TE 20110718
The energy sector is overbought (0.7% above its top TE). The sector is being buoyed by stocks such as Baker Hughes (NYSE:BHI), CONSOL Energy (NYSE:CNX) and EQT that outperformed yesterday-- despite the market pullback.

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BHI Trading Envelope 20110718
CNX Trading Envelope 20110718
EQT Trading Envelope 20110718
Below is the Birinyi Sector Timing Model for the energy sector along with the rest the sectors and the market.
Source: Energy Sector Fights the Trend