Short Term Trading Member Forum

[arjunah]

Airedale, I have been watching the 9 major sectors since you mentioned them in the linked post. Price action since August no longer supports the argument of an August 07 low based on sector strength.

Seven sectors have significantly exceeded their August 07 lows (most of them in January), and the other two have come within a fraction of a point of doing so. Five are now currently below their August lows.

By comparison, at the last 4.5Y low of the SPX in March 03, only one sector had significantly broken its July and Oct 02 lows. So even in 03, the relative strength of 8 of 9 sectors coming out of their 2002 lows did not prevent the 4.5Y low from occuring in Mar. 03. The sectors are far weaker now, compared to their prior lows, than they were at the last 4.5Y bottom.