Take a look at the 3 year chart and the times when XLF was overbought.
XLE: Is in a sweet spot of the wedge right now. Could see a 14pt move either way. More likely a move to 50 if it breaks upwards out of the wedge
XLY: Smack right against it's 200EMA. Chopping around overbought and a flattening RSI. Not to mention it's the Consumer Discretionary Sector. Who has money to spend?
The 3 year looks very nice!
Triple top forming, each time a lower high and a lower low.
XLP: A few points away from resistance via the Nov lows, but short-term term resistance is at 22. Look at the 3 year, anything above will be hard to break, there is resistance from 2007!
XLV: Bearish rectangle forming. Still in that trend channel. Watch for a break, a break of the flag would be bearish for this sector. This sector has a pattern of breaking bear flags. Look at the 3 year.
XLU: Possible Bull flag forming. Which would make sense since Utilities are seen as defensive so if XLU breaks out it should be seen a possibly bearish for the market. Stoch is in a position position.
If the bull flag does break it would be a 3-4 point move right up to the resistance at 29.
XLI: Resistance at 22 and close to the uptrend line. Overbought and a declining RSI.
XLB: Right at resistance. Almost forming a triple top. Which is visible on the 3 year
IYR: Failed at this level twice already. Resistance from Nov and Dec as well. MACD at highest level since 08 as well.
So overall most sectors are in range of heavy resistance and overbought. The market could move up a little more since some sectors have a little more to go before smacking against the heavy resistance. But if this resistance is broken it will be very bullish. If the triple tops on XLU and XLY turn out to Third watch patterns that would be very bullish.
