The chart below reflects the past 60 day returns of the broad market and some very hot sectors.
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Some of these sector ETF’s have doubled to tripled the 500’s performance over the past 60 days. Below is a Micro (close up) look at these leading sectors and a Macro (Big Picture) look at the 500/Wilshire 5000 and NYSE Index’s.
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Macro Summary….Key broad markets remain facing the top of their flag/pennant resistance lines.
Micro Summary… Banks, Homebuilders and Basic Materials/FCX have been really hot over the past 60 days. The Power of the Pattern would suggest to keep a close eye on the Micro moves of these leading sectors in the upcoming days, due to the very bearish pattern they created last Thursday.
As I shared with Premium Members last week, one day DOES NOT make a trend, yet the single day negative action in these leaders at resistance(on Thursday) should be respected on both a Micro and Macro basis.
Keep an extra close eye on what XLF, KRE, XHB, IYM and FCX does in the upcoming days as they gave us a great hint on the future direction of the broad stock market over 60 days ago at the lows (see bullish pattern at the lows) and I suspect they will give us a great Micro tip again!
