INDIVIDUAL SECTOR ANALYSIS

I like to look at the individual sectors especially during times of consolidation. This is especially helpful if you are inclined to build a both long/short portfolio. Sector analysis helps you separate the strongest and the weakest sectors. After all, not all sectors move in the same way as you will see below.

INTERNATIONAL INDICES

Just a quick look at the rest of the world:

CHARTING ALL 500 SPX COMPONENTS

Will be listed on my twitter (http://www.twitter.com/weeklyta) and archived on Chart.ly.

MARKET COMMENTARY (10-01-09)

I'm continuing to look at the 20-day MA for the initial reaction in the SPX. I am also looking to see if it may possibly need the help of the 50-day MA, which will bring the market into a flat, neutral range. The latter is a threat to the rally. So far, I see an orderly pullback and nothing that suggests that we go crashing down.

There are a few things that I need to talk about regarding the individual sectors. The XLB, XLV, XLI, XLU, XLF, and XLE are consolidating nicely, which is expected. However, I am focusing on the XLK, XLP, and XLY. Make note that that these three are forming the apex of their respective wedges. A resolution here may foreshadow what is to come in the next few days/weeks.