Lower Interest Rates Hurt Financial Sector ETF, Help REITs ETF

The S&P 500 is divided into 11 sectors, each traded by its own exchange-traded fund. Since its post-election low, the only sector ETF in bull market territory is financial, but this ETF has a negative weekly chart.

Since its post-election high, the only sector ETF in correction territory is energy, but this weekly chart is showing rising momentum. The daily chart for the energy ETF shows that this week began by a "death cross." This occurs when the 50-day simple moving average crosses below the 200-day simple moving average and indicates that lower prices lie ahead. At Monday's close the 50-day and 200-day simple moving averages are $70.92 and $70.97, respectively.

Lower U.S. Treasury yields helped the REITs ETF maintain a positive weekly chart, but kept the financial sector ETF under a negative weekly chart.

Consumer Discretionary and Consumer Staples, utilities and technology ETFs have positive but overbought weekly charts.

Materials, industrial and transportation ETFs have negative weekly charts, and the health care ETF weekly chart is neutral.

Scorecard for 11 exchange-traded funds
Scorecard for 11 exchange-traded funds

Courtesy Global Marker Consultants

The year-to-date leader is the technology ETF with a gain of 9.3%. The energy sector is the biggest loser, down 7.8% year to date, and in correction territory 11.5% below its Dec. 12 high. Five of the 11 sectors are leading the S&P 500 year-to-date, with its gain of 4.9%.

SPDR Dow Jones REIT ETF (RWR)
SPDR Dow Jones REIT ETF (RWR)

Courtesy of MetaStock Xenith

The weekly chart for the REIT Sector (RWR) ($95.27 on April 17) remains positive this week if the ETF ends the week above its key weekly moving average of $93.42. Weekly momentum is projected to rise to 51.72 this week. Buy weakness to my weekly and quarterly value levels of $92.16 and $90.33, respectively. Sell strength to my semiannual risky level of $96.64.

Materials Sector SPDR Fund (XLB)
Materials Sector SPDR Fund (XLB)

Courtesy of MetaStock Xenith

The weekly chart for the materials sector (XLB) ($51.68 on April 17) remains negative if the ETF ends the week below its key weekly moving average of $51.91. Weekly momentum is projected to slip to 54.08 this week. Buy weakness to my quarterly value level of $45.70. My monthly and weekly pivots are $51.69 and $51.88, respectively. Sell strength to my semiannual risky level of $55.87.

Industrial Select Sector SPDR Fund (XLI)
Industrial Select Sector SPDR Fund (XLI)

Courtesy of MetaStock Xenith

The weekly chart for the industrial sector (XLI) ($64.72 on April 17) remains negative if the ETF ends the week below its key weekly moving average of $64.79. Weekly momentum is projected to decline to 53.18 this week. Buy weakness to my quarterly value level of $59.60. My weekly pivot is $64.44. Sell strength to my monthly and annual risky levels of $66.00 and $70.05, respectively.

Consumer Discretionary Select Sector SPDR Fund (XLY)
Consumer Discretionary Select Sector SPDR Fund (XLY)

Courtesy of MetaStock Xenith

The weekly chart for the consumer discretionary sector (XLY) ($87.44 on April 17) remains positive but overbought with the ETF above its key weekly moving average of $86.78. Weekly momentum is projected to slip to 82.04 this week, just barely above the overbought threshold of 80.00. Buy weakness to quarterly and monthly value levels of $85.41 and $84.84, respectively. My weekly pivot is $87.29. Sell strength to my annual risky level of $97.00.

Consumer Staples Select Sector SPDR Fund (XLP)
Consumer Staples Select Sector SPDR Fund (XLP)

Courtesy of MetaStock Xenith

The weekly chart for the consumer staples sector (XLP) ($55.23 on April 17) remains positive but overbought with the ETF above its key weekly moving average of $54.65. Weekly momentum is projected to slip to 83.20, still above the overbought threshold of 80.00. Buy weakness to my monthly value level of $51.86. My quarterly and weekly pivots are $55.16 and $55.34, respectively. Sell strength to my annual risky level of $58.03.

Energy Select Sector SPDR Fund (XLE)
Energy Select Sector SPDR Fund (XLE)

Courtesy of MetaStock Xenith

The weekly chart for the energy sector (XLE) ($69.46 on April 17) will be upgraded to positive if the ETF ends the week above its key weekly moving average of $70.29, and is below its 200-week simple moving average of $77.03, as this average capped the rally during the week of Dec. 16. Weekly momentum is projected to rise to 22.82 this week, moving above the oversold threshold of 20.00. Buy weakness to my weekly and quarterly value levels of $68.08 and $58.54, respectively. Sell strength to my monthly risky level of $75.19.

Financial Select Sector SPDR Fund (XLF)
Financial Select Sector SPDR Fund (XLF)

Courtesy of MetaStock Xenith

The weekly chart for the financial sector (XLF) ($23.30 on April 17) remains negative with the ETF below its key weekly moving average of $23.62. Weekly momentum is projected to fall to 33.43 this week. Buy weakness to my quarterly value level of $21.40. My weekly and annual pivots are $23.36 and $23.65. Sell strength to my monthly and semiannual risky levels of $25.25 and $25.87, respectively.

Health Care Select Sector SPDR Fund (XLV)
Health Care Select Sector SPDR Fund (XLV)

Courtesy of MetaStock Xenith

The weekly chart for the health care sector (XLV) ($74.25 on April 17) will be downgraded to neutral perhaps negative if the ETF ends the week below its key weekly moving average of $74.06. Weekly momentum is projected to slip to 73.21 this week, trending below the overbought threshold of 80.00. Buy weakness to my quarterly value level of $70.15. Sell strength to my weekly and annual risky levels of $75.84 and $78.09, respectively.

Courtesy of MetaStock Xenith The weekly chart for the health care sector XLV ($74.25 on April 17) will be downgraded to neutral perhaps negative if the ETF ends the week below its key weekly moving average of $74.06. Weekly momentum is projected to slip
Courtesy of MetaStock Xenith The weekly chart for the health care sector XLV ($74.25 on April 17) will be downgraded to neutral perhaps negative if the ETF ends the week below its key weekly moving average of $74.06. Weekly momentum is projected to slip

Courtesy of MetaStock Xenith

The weekly chart for the utilities sector (XLU) ($51.91 on April 17) remains positive but overbought with the ETF above its key weekly moving average of $51.21. Weekly momentum ended is projected to rise to 84.33 this week, moving further above the overbought threshold of 80.00. Buy weakness to my annual pivot of $50.72. My quarterly pivot is $51.19. Sell strength to this weekly and semiannual risky levels are $53.38 and $54.29, respectively.

Technology Select Sector SPDR Fund (XLK)
Technology Select Sector SPDR Fund (XLK)

Courtesy of MetaStock Xenith

The weekly chart for the technology sector (XLK) ($52.85 on April 17) remains positive but overbought with the ETF above its key weekly moving average of $52.55. Weekly momentum is projected to slip to 84.46 this week, still above the overbought threshold of 80.00. Buy weakness to my quarterly value level of $50.61. My monthly pivot is $52.91. Sell strength to my weekly, semiannual and annual risky levels of $53.56, $53.45 and $55.49, respectively.

iShares Transportation Average ETF (IYT)
iShares Transportation Average ETF (IYT)

Courtesy of MetaStock Xenith

The weekly chart for the transportation sector (IYT) ($161.72 on April 17) remains negative given a close this week above its key weekly moving average of $163.68. Weekly momentum is projected to slip to 30.73 this week. Buy weakness to my weekly and annual value levels of $158.07 and $139.43, respectively. Sell strength to monthly and annual risky levels of $174.71 and $182.54, respectively.

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

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