NEW YORK (TheStreet) -- Both the industrial and consumer staples sectors have now technically broken below major, intermediate-term areas of support, according to Schaeffer's Investment Research's senior equity analyst Joe Bell.
Both sectors have been underperforming, with industrials now down nearly 7% for the year and staples down 1.79% vs. the S&P 500's 4.63% rise. Bell said he'd be leery about jumping into either sector in the intermediate term, "especially with the amount of technical strength that we've see in the U.S. dollar."
The declines have been highly correlated with the strengthening dollar in recent weeks, as pictured in the above chart created by Schaeffer's Investment Research. Many of the largest industrial and consumer staples companies such as Caterpillar (CAT - Get Report) and Procter & Gamble (PG - Get Report) have outsized exposures to the international markets, helping drive that correlation. P&G has been particularly choppy of late amid concerns that multinational companies could take a hit in corporate profits if the U.S. dollar were to keep bulking up.