NEW YORK (TheStreet) -- During strong stock market corrections or bear market moves there is typically little if any place to hide, which is why The Informed Trader continues to hold 100% cash since the 2040 S&P 500 six-month support area gave way about two weeks back.  

Markets are getting pretty oversold of late, so investors are wise to avoid the short-selling side and wait for the dust to settle in the near term.

During the current correction, market sector after market sector has broken to the downside.

One of the last holdouts was the pharmaceutical sector. The Market Vectors Pharmaceutical ETF (PPH) - Get Report , an exchange-traded fund that tracks 25 of the largest U.S.-listed pharmaceutical companies, is finally giving way this week.

It has broken through its support line off the 2011 lows and was down about 3.8% for the week as of Tuesday's close.

See the Market Vectors Pharmaceutical ETF weekly chart below:

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Charts composed by The Informed Trader; courtesy of Stockcharts.com

Next, lets take a look at the banking sector. The KBW Bank Index, which includes the largest U.S. banks, had been in an uptrend channel since the 2009 lows, but the index stalled out near the top of the channel last month and is down nearly 14% off that peak in short order.  

The initial thought was that profit margins would expand after an expected Federal Reserve interest rate hike, but such a hike is now in doubt given the recent global rout and domestic economic weakness seen most recently in this week's Institute for Supply Management report. 

The banks have a big weighting in the S&P 500, so this is something to keep in mind.

See the monthly chart of the KBW Bank Index below:

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Charts composed by The Informed Trader; courtesy of Stockcharts.com

Next, lets turn our focus to a key cyclical component: semiconductor stocks. We monitor this sector using the Market Vectors Semiconductor ETF (SMH) - Get Report , which tracks 25 of the largest U.S.-listed semiconductor companies.

This article from Aug. 20 said the semiconductor stocks were sending a troubling signal when they started to break down through the 2009 support line. This was a red flag for the broader market, because the Market Vectors Semiconductor ETF tends to lead other stocks.

As seen below, the ETF is down close 20% since Aug. 20.

See the monthly chart of the Market Vectors Semiconductor below:

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Charts composed by The Informed Trader; courtesy of Stockcharts.com

In sum, there is very little in the way of leadership for the stock market, and there have been few places for bulls to run or hide in the past month.

Given the monthly bearish engulfing candles during August on the major index charts discussed in this late August article, investors would be wise to remain in a defensive posture.

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