The Financial Sector Continues To Have The Best Outlook

I see more green in today's chart, so the models indicate a more bullish future, at least for the next six trading weeks. What stands out most to me is how the technology sector has fallen out of favor. enter image description here The Financial sector continues to have the best outlook, which should occur in the 19 to 22 day period. The estimated top ETF in that category for the same period is $FAS, Direxion's 3x Leveraged Financial Bull ETF. Also, keep a bullish eye on the Commodities Sector, Health Care Sector, U.S. Market Index Sector, and Global Market Index Sector.

On the sell side, the Real Estate sector has the most underperforming outlook in the 24 to 27 day period; in this sector, $IYR, iShares U.S. Real Estate ETF, may have the worst results. Coming in second with a weak view is the Biotech sector early next week and during the first 2 weeks of June, with the ETF $BIB, Proshare's Ultra BioTech, expected to finish the worst in this group.

Financials The Only Bullish Sector For Next 6 Trading Weeks

In today's chart, the lightly shaded background colors indicate a neutral forecast for all the sectors. enter image description here The Financial sector has the best outlook, which should occur in the 15 to 20 day period. The computed average is 6.48. To make a genuinely bullish call, I would want the average to start in the 7s. The estimated top ETF in that category for the same period is $UYG.

Tech, Finance and Real Estate - Midweek

The Technology sector continues to have the best prospect; which should occur in the 27 to 30 day period. The computed average is 6.28 which could be considered not quite bullish. The estimated top ETF in that category for the same period is $XLK,enter image description here the spider Technology Fund. The second-best sector is the Financial sector with a good forecast for the period of 17 to 20 The estimated best ETF in this sector for that period is $FAS, enter image description hereDirexion's Daily Financial Leveraged Bullish ETF.

In contrast, the Real Estate sector has the most underperforming outlook in the 23 to 26 day period. Note that the sector should be positive through the middle of next week and then weakens for the rest of the chart. In this sector, $IYRenter image description here (IShares Real Estate ETF) may have the worst results. The chart isn't all that horrible as it does recover at the end of the 30-day outlook.

Still Like Tech, Not Financial Nor Real Estate

The Technology sector has the greatest prospect in the 25 to 28 day period. The estimated best ETF in that sector for the mentioned period is $XLK. enter image description here

On the sell side, the Financial sector has the most underperforming outlook in the 3 to 6 day period; in this sector, $KBE may have the worst results. Coming in second with a weak outlook is the Real Estate sector for the period of 24 to 27 with the ETF $DRN expected to finish the worst in this group.

Tech Has Strongest Outlook

The Technology sector has the best prospect in the 23 to 26 day period. The computed average is 6.05; with neutral at 4.5 and full bullish at 9, 6.05 could be considered more neutral than bullish. The estimated best ETF in that sector for the mentioned period is $ROM (ProShares Ultra Technology). enter image description here In contrast, the Real Estate sector has the most underperforming outlook in the 21 to 24 day period; in this sector, $URE (ProShares Ultra Real Estate) may have the lowest results. Coming in second with a weak outlook is the Energy sector for the period of 14 to 17 days, with the ETF $UNG (United States Natural Gas Fund) expected to finish the worst in this group.

Biotech and Financial Signals Are The Strongest But Not Very Strong.

The Technology sector has the best prospect in the 24 to 27 day period. The computed average is 5.85, which may be considered almost neutral. The estimated best ETF in that sector for the mentioned period is $SOXL. Next is followed by the Financial sector with a better than average forecast for 14 to 17. The estimated top ETF in this sector for that period is $XLF. enter image description here In contrast, the Real Estate sector has the worst outlook in the 22 to 25 day period; in this sector, $DRN may have the lowest results. Coming in second with a weak outlook is the Bonds sector for the period of 17 to 20, with the ETF $TLT expected to finish the lowest in this group.

Remaining Neutral

For two weeks in a row, I have been bearish. And for two weeks in a row, the indexes have proven me wrong.

Let's take a look at the chart based on what the models see for the next six weeks. enter image description here While no sector is strong in either the bull or bearish sense, some do show some strength and weakness. The tech sector has the strongest bullish score that should occur during the next four trading days. Commodities have some strong numbers occurring next week.

Real estate has the weakest numbers occurring in the final weeks of this month and lastly, Bonds look weak throughout most of the 6 weeks.

Bottom line - the charts remain mostly neutral.

What's UP with the Real Estate Sector

Last week I was a bear; I was wrong as several indexes took to new highs.

Let's look at the chart based on what the models see for the next six weeks; they remain neutral to bearish. enter image description here What stands out are the sixes in Real Estate for next week, with some echoing 5s in the following week. But as you can see further out, Real Estate still is mainly bearish.

Models Remain Bearish To Neutral

Last week I was looking for this past week to be somewhat flat. Looking at the DOW chart, it was until very late on Friday afternoon.
enter image description here Let's take a look at the chart based on what the models see for the next six weeks, and the models continue to be on the bearish side. I consider this to be a relatively bearish chart.

Just like last week - for the next five days, there are no numbers in the sixes. So I consider further selling at least through the entire week. I am not looking for any improvement. enter image description here

As usual, I will avoid the Bond sector, Metals & Miners, Emerging Markets, and Real Estate.

Bottom line- for all sectors, the models have turned bearish for the next six weeks. I run similar models for my retirement accounts with Fidelity Funds, and those models, too, are more bearish and neutral than bullish.

Models Have Gone Bearish On Most Sectors

I was looking for this past week to be bullish. And it was until late Thursday, and then, Powell spoke.

Let's take a look at the chart based on what the models see for the next 6 weeks, and unlike last weekend's chart, the numbers are more bearish. The highest numbers I can see are some 6.1s and 6.2s, very few, and really 6 is a neutral number.

For the next 5 days, there are no numbers in the sixes and Monday a bunch in the upper twos, so I consider further selling at least through the early part of the week. For the rest of the week, the models don't expect any improvement.

Of note is the 2.1 in the Commodities sector on day 22. That quite bearish, so expect changes in commodities in the next 3 to 4 weeks.

As usual, I will avoid the Bond sector, Metals & Miners and what just popped up is the Emerging Market sector, which last week was reported by me to be bullish, so that has changed.

Bottom line- for all sectors, the models have turned bearish for the next 6 weeks.enter image description here