Let’s look at last night’s sector strength chart; the overall average has declined to 3.87 from the previous week’s 4.12. With the bear/bull line at 4.5, the overall score for the next six weeks fell further into the bearish zone.
This week’s sector with the worst score is the Financial sector, scoring 2.58. Which is followed by the Real Estate sector. Real Estate’s 30-day score is 3.16
The Biotechnology sector moved from the second best to first by getting a score of 4.83. Which is just bearly into the bullish zone. The Energy sector, which was the best last week, fell to fourth; it scored 4.27, which is bearish but does show some strength from August 17 until the end of the month. The Bond sector moved to second place and is in the bullish zone with a score of 4.54.
Precious Metals and Miners score 4.43; Tuesday could be interesting for this sector. Health Care has the fifth highest score at 3.94, followed by Non-US Stock Markets at 3.92. Technology is next with a score of 3.89, US Stocks at 3.81, Commodities score 3.76, Emerging Markets record a 3.60, and the Consumer sector’s 30-day average score is 3.58
So, like the past four weeks, the models generally expect a downside to the markets through August until September 19. The one exception is Biotechnology.