Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Sector Analysis: Bracing For A Possible Steeper Correction - Week Ending April 13th, 2017.

|Includes: XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV, Consumer Discretionary Select Sector SPDR ETF (XLY)

Weekly Sector Recap

It was an ugly finish to the holiday shortened week. As pointed out in previous blog posts, the Trump Rally has been waning the last several weeks. That weakness accelerated as the week closed out ahead of the long Easter weekend. Consumer Staples and Utilities were the only two sectors to finish positive.

Healthcare was buoyed somewhat by a gain in Biotech. Consumer Discretionary (Cyclicals) was the only other relative leader (vs. the S&P 500) helped by a 1.5% gain in Home Construction. The gain in Home Construction (BATS:ITB) was likely due to the weakening in the 10-year Treasury yield. The 10-year yield was down 5.94% for the week, finishing at 2.232%.

Transportation Index Relative Strength - April Fool or April Rally Revisited

Two weeks ago it was highlighted that the Transports were struggling and perhaps telegraphing more weakness was in store for the market. Following is an updated relative-strength chart of the Transportation Index vs. the S&P 500. There was a breakdown on Wednesday that preceded the Thursday selloff. If support (green line in chart) cannot hold next week then we are in for a continued and larger correction…

Thanks for the read…

Previous Instablog's for Reference:

Sector Analysis: Watch The Transports For Clues On An April Rally - Week Ending Mar. 31 St , 2017.

Sector Analysis: Keeping An Eye On Transports Ahead Of Fedex Earnings - Week Ending Mar. 17, 2017.

Sector Analysis: Crude Oil Plays Catch-Up With XLE - Week Ending March 10th, 2017.

Sector Analysis: A Split Decision for February - Week Ending March 3, 2017.

Sector Analysis: Defensive Rotation vs. Seasonality & Energy's Divergence - Week Ending Feb. 24, 2017.

Sector Analysis: The (Up) Trend Is Your Friend - Week Ending Feb 17, 2017.

Sector Analysis: Confirming Trends Using Equal Weighted ETF's - Week Ending Feb 10, 2017.

Sector Analysis: Defensive Posturing or February Consolidation? - Week Ending Feb 3, 2017.

Sector Analysis: Materials Sector Finishes Strong & February Sector Preview - Week Ending Jan 27, 2017.

Sector Analysis: Cyclicals And The Transportation Index Say Stay Long- Week Ending Jan 20, 2017.

Disclosure: I am/we are long ITB.