Friday, May 29, 2009

05.29.09 - Energy Props Broad Market

Looking across the major sectors, it seems Energy (XLE +1.5%), Basic Materials (XLB), and Consumer Staples (XLP) are largely holding up this market, and that can't be good for too long -- even though this feels a bit like consolidation just now. However, most internals are going sideways along with price as the S&P500 hugs its VWAP. The flattish 5-DMA has so far provided support, keep an eye on that on any third test. Treasury yields are finally giving some relief to bond prices, which should also help equities to an extent.

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