The dynamics among the 11 S&P 500
Like technology, the utilities ETF has a positive but overbought weekly chart, thanks to investors' quest for dividends. The momentum gains from technology combined with the "flight to safety" of dividend income, defines what's called a barbell investment portfolio.
The barbell strategy balances investors' portfolios by pairing risk of volatile stocks with the income security of dividend stocks.
The only other sector ETF with a positive but overbought weekly chart is consumer discretionary. Sector ETFs with positive weekly charts are materials, industrial, financials and health care. Sector ETFs with neutral weekly charts are consumer staples and transportation. The REIT ETF still has a negative weekly chart, while the energy ETF is on the cusp of an upgrade from a negative weekly chart.
When looking at the weekly charts below, keep an eye on the 200-week simple moving averages, shown in green. Investors should consider this level as the "reversion to the mean." This reversion is an investment theory that the price, or an index, stock or ETF, will eventually return to a longer-term simple moving average, and the 200-week is simple to track. A ticker trading above its "reversion to the mean" will eventually decline back to it on weakness. Similarly, a ticker trading below its "reversion to the mean" will eventually rebound to it on strength.