Sector Scorecard: Fading Trump Rally Taking Down Sector ETFs - TheStreet

Say goodbye to the Trump rally?

As you know, the S&P 500 I:GSPC is divided into 11 sectors. Each can be traded using its own exchange-traded fund. We're three weeks into the year and the weekly charts show several negative divergences. The Trump market rally is fast becoming a "buy the election, sell the inauguration" story.

Thanks to their largest components, consumer discretionary and consumer staples sector ETFs now have positive weekly charts. The utilities ETF also has a positive weekly chart despite being virtually flat year to date.

Six sector ETFs have positive but overbought weekly charts: REITs, materials, industrial, financial, technology and transportation are in this technical category. The energy and health care sector ETFs have neutral weekly charts.

Here's this week's scorecard for the 11 exchange-traded funds that represent each of the sectors of the S&P 500.

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The SPDR Dow Jones REIT ETF (RWR) - Get Report ended last week at $93.47, up just 0.1% in the first three weeks of 2017 and in correction territory 10.4% below its all-time intraday of $104.34 set on July 29, 2016 and is 15.8% above its Feb. 11, 2016 low of $80.74.

The weekly chart for RWR remains positive with the ETF above its key weekly moving average of $92.86 and above its 200-week simple moving average of $86.34, last tested as its "reversion to the mean" during the week of Feb. 12, 2016 when the average was $81.06. The weekly momentum reading rose to 67.70 last week up from 61.70 on Jan. 13.

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Courtesy of MetaStock Xenith

Investors looking to buy the REIT ETF should do so on weakness to $86.34, which is the 200-week simple moving average. The $94.74 level should be a magnet through March as it was in the first two weeks of 2017. Investors looking to reduce holdings should consider selling strength to $99.70, which is a key level on technical charts until the end of January. Semiannual and annual risky levels are $101.09 and $112.38, respectively.

The Materials Select Sector SPDR Fund (XLB) - Get Report ended last week at $51.00, up 2.8% in the first three weeks of 2017, after setting its 52-week intraday high of $51.69 on Dec. 12, 2016. The ETF is in bull market territory 40.8% above its Jan. 20, 2016 low of $36.29.

The weekly chart for XLB is positive but overbought with the ETF above its key weekly moving average of $50.18 and above its 200-week simple moving average of $46.10, last tested as the "reversion to the mean" during the week of July 1 when the average was $44.51. The weekly momentum reading rose to 80.23 last week up from 77.80 on Jan. 13, moving above the overbought threshold of 80.00.

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Investors looking to buy the materials ETF should do so on weakness to $49.43 and $44.49, which are key levels on technical charts until the end of January and the end of March, respectively. Investors looking to reduce holdings should consider selling strength to $52.52, $55.87 and $61.72, which are key levels on technical charts until the end of this week, until the end of June and until the end of 2017, respectively.

The Industrial Select Sector SPDR Fund (XLI) - Get Report ended last week at $63.44, up 2% in the first three weeks of 2017. This ETF set its all-time intraday high of $64.07 set on Dec. 7, 2016. This ETF is in bull market territory 35.5% above its Jan. 20, 2016 low of $46.82.

The weekly chart for XLI remains positive but overbought with the ETF above its key weekly moving average of $62.49 and above its 200-week simple moving average of $53.13, which was last tested as the "reversion to the mean" during the week of Jan. 22, 2016 when the average was $47.92. The weekly momentum reading rose to 86.21 last week up from 84.46 on Jan. 13, well above the overbought threshold of 80.00.

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Investors looking to buy the industrial ETF should do so on weakness to $61.84 and $56.09, which are key levels on technical charts until the end of January and the end of March, respectively. Investors looking to reduce holdings should do so on strength to $70.05 and $71.67, which are key levels on technical chart until the end of 2017, and until the end of June, respectively.

The Consumer Discretionary Select Sector SPDR Fund (XLY) - Get Report ended last week at $83.93, up 3.1% in the first three weeks of 2017 and set its all-time intraday high of $84.68 on Dec. 13, 2016. The ETF is in bull market territory 24.2% above its Jan. 20. 2016.

The weekly chart for XLY remains positive with the ETF above its key weekly moving average of $82.68 and well above its 200-week simple moving average of $71.20. The weekly momentum reading rose to 79.59 last week up from 75.24 on Jan. 13.

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Investors looking to buy the consumer discretionary ETF should do so on weakness to $81.30, which is a key level on technical charts until the end of January. Investors looking to reduce holdings should consider selling strength to $84.35, which is a key level on technical charts until the end of March. Annual and semiannual risky levels are $97.00 and $98.70, respectively.

The Consumer Staples Select Sector SPDR Fund (XLP) - Get Report ended last week at $52.58, up 1.7% in the first three weeks of 2017 and set its all-time intraday high of $56.02 back on July 14, 2016. The ETF is up 11% from its Jan. 20, 2016 low of $47.39.

The weekly chart for XLP has been upgraded to positive with the ETF above its key weekly moving average of $51.94 and above its 200-week simple moving average of $47.28. The weekly momentum reading rose to 60.57 last week up from 55.37 on Jan. 13.

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Investors looking to buy the consumer staples ETF should do so on weakness to $47.28, which is the 200-week simple moving average. Investors looking to reduce holdings should consider selling strength to $53.48 and $53.68, which are key levels on technical charts until the end of March and the end of January, respectively.

The Energy Select Sector SPDR Fund (XLE) - Get Report ended last week at $74.54, down 1% in the first three weeks of 2017. The ETF is in bull market territory 49.3% above its Jan. 20, 2016 low of $49.93. This ETF set its 2016 high of $78.45 on Dec. 12.

The weekly chart for XLE has been upgraded to neutral with the ETF above its key weekly moving average of $74.44, and below its 200-week simple moving average of $77.57, after being briefly above it during the week of Dec. 16. The weekly momentum reading slipped to 74.95 last week down from 77.77 on Jan. 13.

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Investors looking to buy the energy ETF should do so on weakness to $73.68, which is a key level on technical charts until the end of January. The $59.87 level is a value level until the end of March. Investors looking to reduce holdings should consider selling strength to $84.23, which is a key level on technical charts until the end of June.

The Financial Select Sector SPDR Fund (XLF) - Get Report ended last week at $23.15, down 0.4% in the first three weeks of 2017. The ETF is in bull market territory 46% above its Feb. 11, 2016 low of $15.86. This ETF set its multiyear intraday high of $23.87 on Dec. 15.

The weekly chart for XLF remains positive but overbought with the ETF above its key weekly moving average of $22.93 and above its 200-week simple moving average of $18.63, last tested as the "reversion to the mean" during the week of July 1 when the average was $17.58. The weekly momentum reading ended last week at 91.01, still well above the overbought threshold of 80.00.

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Investors looking to buy the finance ETF should do so on weakness to $22.19 and $19.86, which are key levels on technical charts until the end of January and until the end of March, respectively. The $23.65 level is an annual pivot or magnet which was crossed in each of the first two weeks of 2017. Investors looking to reduce holdings should consider selling strength to $25.87, which is a key level on technical charts until the end of June.

The Health Care Select Sector SPDR Fund (XLV) - Get Report ended last week at $69.84, up 1.3% in the first three weeks of 2017. The ETF is 11.4% above its Feb. 9, 2016 low of $62.68. This ETF is 8.1% below its Aug 1, 2016 high of $76.00.

The weekly chart for XLV has been downgraded to neutral with the ETF below its key weekly moving average of $69.91 and above its 200-week simple moving average of $64.51. The weekly momentum reading rose to 62.76 last week up from 56.48 on Jan. 13.

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Investors looking to buy the health care ETF should do so on weakness to $64.51, which is the 200-week simple moving average. Investors looking to reduce holdings should consider selling strength to $71.79, $72.65 and $78.09, which are key levels on technical charts until the end of January, the end of March and the end of 2017, respectively.

The Utilities Select Sector SPDR Fund (XLU) - Get Report ended last week at $48.64, up 0.1% in the first three weeks of 2017. The ETF is 8.3% below its July 6, 2016 high of $53.02, and is 17.2% above its Dec. 11, 2015 low of $41.50.

The weekly chart remains positive with the utilities ETF above its key weekly moving average of $48.33 and above its 200-week simple moving average as support at $43.75. The weekly momentum reading rose to 67.72 last week up from 63.64 on Jan. 13.

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Investors looking to buy the utilities ETF should do so on weakness to $46.26, which is a key level on technical charts until the end of March. Investors looking to reduce holdings should consider selling strength to $50.53 and $50.72, which are key levels on technical charts until the end of January and the end of 2017, respectively. A semiannual risky level is $54.29.

The Technology Select Sector SPDR Fund (XLK) - Get Report ended last week at $49.80, up 3% in the first three weeks of 2017, and in bull market territory 30.9% above its Jan. 20, 2016 low of $38.03. This ETF set its all-time intraday high of $49.75 on Jan. 13.

The weekly chart for XLK remains become positive but overbought with the ETF above its key weekly moving average of $48.81 and well above its 200-week simple moving average of $39.92. The weekly momentum reading rose to 87.60 last week up from 82.63 on Jan. 13, moving further above the overbought threshold of 80.00.

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Investors looking to buy the technology ETF should consider doing so on weakness to $46.95, which is a key level until the end of March. Investors looking to reduce holdings should consider selling strength to $51.30, $53.45 and $55.49, which are key levels on technical charts until the end of January, the end of June and the end of 2017, respectively.

The iShares Transportation Average ETF (IYT) - Get Report ended last week at $166.19, up 2.1% in the first three weeks of 2017, and in bull market territory 44.6% above its Jan. 20, 2016 low of $114.91. This ETF set its all-time intraday high of $171.16 set on Dec. 9, 2016.

The weekly chart for the transportation ETF is positive but overbought with the ETF above its key weekly moving average of $162.88, which held on weakness the past two weeks. The ETF is above its 200-week simple moving average of $140.51. The weekly momentum reading slipped to 79.98 last week down from 80.25 on Jan. 13, so this reading rounds to the overbought threshold of 80.00, and will like fall below 80.00 this week.

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Investors looking to buy the transportation ETF should consider doing so on weakness to $155.40 and $130.09, which are key levels on technical charts until the end of January and the end of March, respectively. Investors looking to reduce holdings should do so on strength to $170.17 and $182.54, which are key levels on technical charts until the end of this week and the end of 2017, respectively.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.