2017-08-18 15:15:47 | On The Fly: Weekly technical notes for S&P 500The S&P 500 (SPX) looks set to end the weak sharply lower and near a major inflection point technically. A breakdown below the 2400 level might be possible next week depending on the nature of news over the weekend. Momentum has turned negative with recoveries weak and into a seasonally weak period. Equally, unexpected positive news could turn market sentiment in which case resistance at 2440 and then at 2450-2460 area could be tested. Sector performance for the week was mixed. Only Consumer Staples (XLP), Utilities (XLU), and Basic Materials (XLB) were positive and at a moderate level at that. Rotation into Consumer Staples and Utilities is typical of a "risk off" posture. On the downside, Energy (XLE), Financials (XLF), Technology (XLK), and Consumer Discretionary (XLY) lead on the downside. |
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