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
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:
- US investors appear to be at the early-middle bear stage of stock market cycle.
- This is how you can use the SPDR Sector Select sector tracker and heatmap to help you.
- 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.
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"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."