Sector breakdown following Friday’s indices ‘monster’ move

On 09 September, US stock indices fall most since Brexit with Real Estate and Utilities as loss leaders. These sectors worry investors most with utilities’ loss pointing to a potential broader market correction.

 

US stock indices down most since Brexit; Real Estate, Utilities weakest

US stock indices including Dow Jones Industrial Average, S&P500, Russell 2000 and Nasdaq moved by most on Friday 09 September 2016 since Brexit. This is what the sector breakdown looks like according to SPDR Sector Select ETFs.

Based on 1-day and 5-day movement, investors appear to be most worried/selling Real Estate and Utilities. Utilities selling down could be a bad sign – this is the sector that investors turn to when there is volatility but if it is sold down, then potentially investors are also thinking 1) that even utilities are fully/over-valued 2) a broader market correction is coming.

Same day (09 Sep 2016) and 5-day (Week36) sector movement based on ETFs from SPDR Sector Select

Same day (09 Sep 2016) and 5-day (Week36) sector movement based on ETFs from SPDR Sector Select

Dow Jones Industrial Average daily chart (top), S&P 500 daily chart (bottom)

Dow Jones Industrial Average daily chart (top), S&P 500 daily chart (bottom) | Source: Tradingview.com

These are some stories that might interest readers here:

  1. US investors appear to be at the early-middle bear stage of stock market cycle.
  2. This is how you can use the SPDR Sector Select sector tracker and heatmap to help you.
  3. Lastly it is still possible for a deep stock market correction/crash in the late stage of a US Presidential Election year based on Year 2000 as an example.
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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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