Interesting Charts

Interesting technical action is selected sectors yesterday! One day does not make a trend, but yesterday saw the first signs of positive technical evidence of a short term and possibly a medium term bottom. Strength was notable in the energy and materials sectors (including the metals & mining subsector within the materials sector). Their prices rebounded strongly, they significantly outperformed the S&P 500 Index, they saw their RSI recover from the 30% level and they recorded a gain by Stochastics from below the 20% level (but not a buy signal). Was strength yesterday a “one day wonder” triggered by short covering from a deeply oversold level or was it the shot from the “starting gun” for a series of seasonal trades? Energy, Mines & Metals and Materials sectors are at or near the time when seasonal influences turn positive. The answer is “I don’t know!” Not enough data is available. However, interest has been alerted. Stay tuned!

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com

Chart courtesy of StockCharts.com www.stockcharts.com