XLK has had a monster run and is now challenging the September '09 high and early 2008 lows. RSI (strength) is at 61 but has been diverging with price, same with the money flow index. The MACD (momentum) has been diverging with price but is still above zero, meaning the 12dma (faster moving avg) hasn't crossed below the 26dma (slower moving avg). You can also see that XLK is trading in a steep triangle and is near the moment of trend judgment. It did break above that 2 year downtrend and it is currently above the 50dma. IMO, wait for the catalyst. Either we retest the 50d or break out to 24.
Same goes for XLI, but it needs to break above the September 2009 high to reach the next resistance level, 32. Money flow is below 0 at -0.064. IYT has a historical ceiling and a downtrend to break above. MACD is just above zero so watch momentum. What's interesting is the money flow index. It is at -0.0176, hitting levels not seen since June.
XLE looks the best. It just pierced through resistance and if there is a follow through XLE could test 2008 levels, or 62. Money flow and RSI are strong but there has been price divergence.
Looking at 20 day sector performance comps, energy outperformed up 5.88%, tech was up 2.37%, industrials were unchanged while the transports lost -2.38%. Strength must pick up in the transports.
All the rest are self explanatory. The SPY needs to break above near term resistance if it wants to test 117 (July 2008 resistance). The VIX is hitting yearly lows for the third time at 23. I also provided charts of USO, TLT, GLD and UUP. USO is riding oil strength and is brushing up against symmetrical triangle/June resistance. A break above those levels would be interesting. I'd say provide some charts in the comment section but Disqus can't embed pictures. Wack.
XLE,XLI,XLK,IYT 20 Day Performance