Bespoke's Sector Snapshot (6/18/08)

Below we highlight our trading range charts of the S&P 500 and its ten sectors.  The green zone represents between one and two standard deviations below the sector's 50-day moving average, and vice versa for the red zone.  Energy, Materials and Utilities are the only sectors flirting with the red zone at the moment, while the rest are generally oversold. 

The S&P 500 is getting close to two standard deviations below its 50-day moving average as it tests its recent lows.  Financials continue to be pure garbage, while Industrials, Health Care, and the consumer sectors aren't far behind.  If you're a trend follower, Energy, Technology and Materials are your best bets.

 

Comments

[Whidbey]

Two sd are interesting only if we assume we are dealing with normal distribution. This is not that case, the bias which is pushing the markets is not going to move within a 4 sd range. Your advice on materials is not reasonable, the over bought condition will become horrendious before it does more than briefly correct. Your analysis is unsupportable.