Bear Alert: There Are No Safe Havens Among S&P Sectors

The headline from last week must be the downgrades among the 11 S&P 500 sector exchange-traded funds. The technology ETF was downgraded to negative from positive but overbought. The energy sector was downgraded to negative from neutral. The financial sector was downgraded to neutral from positive.

The utilities and transportation ETFs remain neutral. All other sector ETFs remain negative as the REIT sector and health care sector become oversold.

The S&P 500 SPDR ETF (SPY) continues to have a negative weekly chart. This benchmark exchange-traded fund, known as Spiders ended last week below its key weekly moving average of $213.18 with weekly momentum declining to 32.87 last week down from 40.91 on Oct. 28.

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

 

The weekly chart for the SPDR Dow Jones REIT ETF (RWR) is negative but overbought with the ETF below its key weekly moving average of $93.56 and above its 200-week simple moving average of $85.48. The weekly momentum reading declined to 16.75 last week down from 20.57 on Oct. 28, falling below the overbought threshold of 80.00.

Courtesy of MetaStock Xenith

Investors looking to buy the REIT ETF should do so on weakness to $85.48, which is the 200-week simple moving average. Investors looking to reduce holdings should consider selling strength to $101.16, which is a key level on technical charts until the end of 2016.

The weekly chart for the Materials Select Sector SPDR Fund (XLB) remains negative with the ETF below its key weekly moving average of $47.03 and above its 200-week simple moving average of $45.51, last tested during the week of July 1, when the average was $44.51. The weekly momentum reading declined to 32.03 last week down from 33.46 on Oct. 28.

Courtesy of MetaStock Xenith

Investors looking to buy the materials ETF should do so on weakness to $42.80, which is a key level on technical chart until the end of 2016. Investors looking to reduce holdings should consider selling strength to $52.35 and $53.66, which are key levels on technical charts until the end of November and until the end of 2016, respectively.

The weekly chart for the Industrial Select Sector SPDR Fund (XLI) is negative with the ETF below its key weekly moving average of $57.25 and above its 200-week simple moving average of $51.93. The weekly momentum reading declined to 32.16 down from 39.85 on Oct. 28.

Courtesy of MetaStock Xenith

Investors looking to buy the industrial ETF should do so on weakness to $55.86, which is the 200-day simple moving average. Investors looking to reduce holdings should do so on strength to $61.88, which is a key level on technical chart until the end of November. The $57.42 level should be a magnet until the end of 2016.

The weekly chart for the Consumer Discretionary Select Sector SPDR Fund (XLY) is negative with the ETF below its key weekly moving average of $78.83 and well above its 200-week simple moving average of $69.46. The weekly momentum reading declined to 28.54 down from 35.40 on Oct. 28.

Courtesy of MetaStock Xenith

Investors looking to buy the consumer discretionary ETF should do so on weakness to $71.86, which is a key level on technical charts until the end of 2016. Investors looking to reduce holdings should consider selling strength to $84.23, which is a key level on technical charts until the end of November.

The weekly chart for the Consumer Staples Select Sector SPDR Fund (XLP) remains negative but oversold with the ETF below its key weekly moving average of $52.69 and well above its 200-week simple moving average of $46.52. The weekly momentum reading declined to 16.20 last week down from 18.00 on Oct. 28, moving further below the oversold threshold of 20.00.

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Investors looking to buy the consumer staples ETF should do so on weakness to $46.64, which is a key level on technical charts until the end of 2016. Investors looking to reduce holdings should consider selling strength to $55.98, which is a key level on technical charts until the end of November.

The weekly chart for the Energy Select Sector SPDR Fund (XLE) has been downgraded to negative from positive with the ETF below its key weekly moving average of $69.12 and well below its 200-week simple moving average of $77.75. The weekly momentum reading declined to 54.21 down from 69.80 on Oct. 28.

Courtesy of MetaStock Xenith

Investors looking to buy the energy ETF should do so on weakness to $65.57, which is the 200-day simple moving average.

Investors looking to reduce holdings should consider selling strength to $69.75, which is a key level on technical charts until the end of this week.

The weekly chart for the Financial Select Sector SPDR Fund (XLF) is neutral with the ETF just below its key weekly moving average of $19.51 and above its 200-week simple moving average of $18.16, last tested during the week of July 1 when the average was $17.58. The weekly momentum reading ticked up to 63.55 last week up from 62.72 on Oct. 28.

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Investors looking to buy the finance ETF should do so on weakness to $18.16, which is the 200-week simple moving average. A quarterly level of $19.55 should be a magnet. Investors looking to reduce holdings should consider selling strength to $21.31, which is a key level on technical charts until the end of November.

The weekly chart for the Health Care Select Sector SPDR Fund (XLV) is negative but oversold with the ETF below its key weekly moving average of $69.92 and above its 200-week simple moving average of $63.07. The weekly momentum reading fell to 13.86 last week down from 18.03 on Oct. 28, become further below the oversold threshold of 20.00.

Courtesy of MetaStock Xenith

Investors looking to buy the health care ETF should do so on weakness to $60.59, which is a key level on technical charts until the end of 2016. Investors looking to reduce holdings should consider selling strength to $74.97, which is a key level on technical charts until the end of November.

The weekly chart for the Utilities Select Sector SPDR Fund (XLU) has been upgraded to 5neutral with the ETF below its key weekly moving average of $48.58 and well above its 200-week simple moving average of $43.16. The weekly momentum reading rose to 23.56 last week up from 21.09 on Oct. 28, rising above the oversold threshold of 20.00.

 

Courtesy of MetaStock Xenith

Investors looking to buy the utilities ETF should do so on weakness to $43.16, which is the 200-week simple moving average. Investors looking to reduce holdings should consider selling strength to $51.19 and $51.46, which are key levels on technical charts until the end of 2016.

The weekly chart for the Technology Select Sector SPDR Fund (XLK) has been downgraded to negative down from positive but overbought with the ETF above its key weekly moving average of $47.03 and well above its 200-week simple moving average of $38.90. The weekly momentum reading declined to 72.26 down from 81.34 on Oct. 28, falling below the overbought threshold of 80.00.

Courtesy of MetaStock Xenith

Investors looking to buy the technology ETF should do so on weakness to $44.45, which is the 200-day simple moving average. My annual value level lags at $35.69 with a pivot at $46.72 in play for the remainder of the year. Investors looking to reduce holdings should consider selling strength to $49.05, which are key levels on technical charts until the end of 2016.

The weekly chart for the Shares Transportation Average ETF (IYT) has been downgraded to neutral with the ETF above its key weekly moving average of $143.79 and above its 200-week simple moving average of $137.34. The weekly momentum reading ended last week at 75.37 down from 76.97 on Oct. 28.

Courtesy of MetaStock Xenith

Investors looking to buy the transportation ETF should consider doing so on weakness to $139.62 and $136.24, which are key levels on technical charts until the end of 2016. Investors looking to reduce holdings should do so on strength to $151.34, which is a key level on technical charts until the end of November.

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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