US SECTOR OVERVIEW
All US sectors save Utilities are trading close to the upper end of their range but are very close to a breakout to the downside which suggests general market weakness ahead in the short run. Utilities offer a contrarian short term buy based on this indicator.
Breadth is deteriorating in all sectors with utilities looking as a good contrarian buy based on both breadth and trading ranges.
GLOBAL OVERVIEW
Most global stock markets are trading in the upper boundary of their trading ranges which initially signify strong momentum. However some stock markets (Brazil, Hong Kong (HSI), India and the UK) are starting to break out of these upper trading ranges which is usually associated with short term weakness.
The advance/decline ratio has rolled over for most markets as breadth has started to weaken. The aforementioned economies (Brazil, Hong Kong (HSI), India and the UK) look weakest as well as does the Nikkei 225. The number of stocks trading above their 50d moving average is now visibly rolling over for all markets save perhaps US and European stocks. Generally, the same economies as above stand out with the strongest decline (Brazil, Hong Kong (HSI), India and the UK).
