The S&P 500 price chart below highlights the historical trading area of the S&P 500. When the price (dark blue line) is within the light blue area, it is considered neutral. When it moves in or above the red area, it is considered overbought. When it moves in or below the green area, it is considered oversold. As shown, the S&P is currently trading right about in the middle of its historical trading range, which highlights the sideline sitting leading up to today's rate decision.
Below we provide the same charts for the ten major sectors. Most sectors are trading right around their 50-day moving averages, although Energy and Consumer Staples are close to overbought levels. These trend charts are a key decision factor in determining our sector allocation for our money management accounts. On the buy side, we look for sectors in a nice uptrend that move into or below the green shading. On the sell side, we look for moves above the red area.