Let’s look at last night’s sector strength chart based on the corresponding ETF averages; this week’s overall average is still bearish with a value of 4.00, which is up marginally from last week’s 3.88.
Since the bearish and bullish calls for this week are the same as they have been for the past several weeks, I will do the sector review differently. Today I present the 30-day average for each sector from bullish to bearish. To start things off, and as it has been for the past six weeks, the Energy sector has a weak bullish number at 5.57. As I have mentioned in previous videos, I prefer to see a number above 6.5.
Coming in second on the bullish side, for the third week in a row, is the Real Estate sector. Its average value is 4.69, which is barely above the neutral number of 4.5.
Starting with the bearish sectors first is Commodities with a score of 4.27. Then follows the Financial sector, averaging at 4.15. The third bearish sector is Health Care, with a score of 4.11. Following Health Care is the International Markets with a value of an even 4. Fifth in the bearish group is Precious Metals and Miners, with an average 30-day score of 3.88. The Bond sector closely follows Metals and Miners with a score of 3.87. Bonds are followed by Emerging markets, scoring 3.73. The eighth sector is the US Stock Market, with a score of 3.64. At third to last is the Consumer sector, which averages a 3.63. And finally, the last two sectors are Biotechnology at 3.23 and Technology at 3.20.
So eleven out of the thirteen sectors, the models’ track, are bearish, and the two bullish sectors are barely bullish.