Wall Street – Market Sectors

The ShareHunter market analysis continues to suggest that the markets are slowly moving into a position from which they could make some fast upward moves. The UK’s FTSE 250 index has led the way for some weeks now and is almost ready to make a ‘breakout’ move.

The US markets have been slower off the mark but are moving ahaead, with the Nasdaq 100 leading its bigger sisters.

Both the S&P 500 and the DJIA indices have to move up to tackle the knotty problem of some overhead resistance levels. A test of these levels will see the indices either fall back for another few weeks or will see a break above the resistance and so present a ‘breakout’ opportunity.

In the event that this might happen we have scanned and analysed the US markets sectors to identify which areas might offer the fastest and best potential for some quick gains.

Of 69 sectors analysed it is heartening that the majority (59 in fact) fell into ‘positive’ territory – i.e. those having already started into early phase uptrend. In itself this suggests that the markets overall are gearing up for a new bull run (but it is, as yet, still too soon to be jumping into the market with both feet as the early phase is a delicate trend and the markets can confound any over optimism by making a swift reverse and dropping back to support levels).

But, taking the optimistic train which sectors are likely to produce some goodies? Well, of the 20 sectors in early-phase Uptrend there are four that we have identified as well worth watching for a break upwards:

Sector Industrial Gases – Click on chart to enlarge

With the state that the US car manufacturing is in it is surprising to see the Auto Components sector showing up so well. But, then, maybe not. We are technical analysts and know little of the fundamentals so perhaps there is something ‘out there’ that we know nothing about. What we do know is that the charts don’t lie.

More information and detailed analysis is available on request.