Consumer discretionary, health care and technology sector ETFs have set new highs post the Federal Reserve's latest rate hike
The REIT and energy sector ETFs remain the year-to-date losers, but only technology has a year-to-date gain above 10%. Here's how to trade all 11 S&P sector exchange-traded funds.
The S&P 500 I:GSPC is divided into 11 sectors, and each is traded using its own exchange-traded fund. Consumer discretionary, health care and technology set new 52-week intraday highs last week, following a positive reaction to the Fed's rate hike. REITs and energy remain in correction territory versus highs set in July and December, respectively.
Seven sectors have positive but overbought weekly charts. REITs, energy and transportation have negative weekly charts. The materials sector has a neutral weekly chart.
Despite continued stock market strength, weekly momentum is declining above the overbought threshold of 80. This is a negative divergence as weekly closes are further below the weekly highs. This observation supports the investment strategy to reduce holdings on strength.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.