Sector Spotlight: Healthcare Stalls, Basic Materials Rally XLV XLB XLE

Another go-nowhere week has come and gone.  Does anyone need a reminder of what time of year we are in?  The markets are boring and will continue to be boring.  The S&P 500 $SPX bounced off some critical support this week, but I doubt we will be able to hold the line in the coming days and weeks.  How are we going to bust through the highs without killing another Bin Laden?  Know what I mean?

Winners: $FCX, $MON, $NOV, $HAL, $OXY, $GS, $V, $MA, $S

Losers: $MRK, $ABT, $MDT, $UNH, $HD, $KO, $AVP

I wrote last week that I thought healthcare would take a breather and energy would catch a bid and that’s exactly what happened.  Unfortunately for bullish traders the movement wasn’t constructive for higher prices.  Take a look at the charts and tell me that this market has solid leadership.  The leaders chart below is anemic.  The broad markets seem to be chasing $FCX and energy stocks up and down the graph, but I doubt that we get a sustained rally from here without solid leadership breakout or a catalyst.

I’m a bull market trader and absolutely hate being bearish, but this is what I see.  The market got kicked up by some buy programs on Thursday with $GS flipping the shorts into the close.  Friday was light trading into a holiday weekend.  That was the bounce kids — just a couple buy programs on a dull tape off support.  Anything commodity related probably continues to have a bid because of the overall macro picture.  The wildcard continues to be the financials.  If they take a leadership roll we’ll rally from here.  If not, we should see lower prices in the broad indexes.

Leaders:

Laggards:


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