Bespoke's Sector Snapshot (5/8/08)

Below we highlight our trading range charts for the S&P 500 and its ten sectors. The red shading and above it is overbought territory, while the green shading and below it is oversold territory.

As shown, after breaking just above its longer-term downtrend, the S&P 500 has stalled at resistance even though it remains slightly overbought. The next level of support for the index is at the 1,380 level.

On a sector basis, most of them have moved back into neutral territory after trading overbought for a week or so. Short-term uptrends remain, but we'll need to see support hold soon if they are to stay intact.

Energy, Materials, Telecom and Technology are still slightly overbought, with Energy and Materials at or close to their 52-week highs.

Comments

[User 88243]

Lookes like we are headed to a huge correction......
back to oversold. That s how, the market works.

....nearly all sectors are OVERBOUGHT.
Thats why, I am holding ULTRA SHORTs **SKF!

[Whidbey]

Nice assessment, but what about timing. I mean, sell in may and stay away until Halloween day? My seasonality plays say it is going to be best to be out of the index markets and in GMNAs until this fall. My old broker used to say, "if I give you a level, you get no timing, and vice versa". Oh well, the elections and the possibility of a triple play by the dems will ring the bell before the main event in November. By fall the knock out punch?? Good analysis.