On The Fly: Weekly technical notes for S&P 500

For the last five days, the S&P 500 (SPX) is set to end almost where it began at time of writing. Price was at 2669.76, leaving price below an important resistance area at 2700. For the coming week, the 2700-2750 band remains resistance. Support is now in the 2650-2600 area. The bands are much wider than typical given the large number of earnings reports to come and the potential for sharper moves as a result. Sector performance was mixed, with sectors that lost momentum outpacing the scale of gainers. Were it not for weighting factors, the week would look considerably worse than flat. Consumer Staples (XLP) was the weakest sector by a very wide margin. Real Estate (XLRE) and Technology (XLK) were also notably weak. The gainers were Energy (XLE), Materials (XLB), and the Financials (XLF), though the gains were modest outside of Energy. Interest rate sensitive stocks may continue under pressure as a more hawkish rate outlook dominates. The one sector benefiting from a higher rate regime is Financials.