Weekly Market Review: June 12, 2009

The market continues to be at a stalemate this week. The trading range of 925-950 identified last week remains intact. However, the 40 day MA finally touched the 200 day MA today (Figure 1). We should see the 50 day MA following suit next week. With the price being so tightly squeezed now, there really isn't much room left to this prolonged sideway action.

Coincidentally, the lack of market action coincide with my reduction in time spent with the market. I've been busy at work.

On another note, Atilla at xTrends posted a few education pieces regarding intermarket relations, xTrends, and fundamental analysis (to be posted).

[caption id="attachment_1515" align="aligncenter" width="500" caption="S&P 500 ETF"][S&P 500 ETF][][/caption]

[caption id="attachment_1516" align="aligncenter" width="500" caption="S&P 500 ETF"][S&P 500 ETF][][/caption]

GICS Sectors Review

The chart below is taken from CaraCommunity’s RSIApp. Technology (XLK) remains high from last week. Consumer Staples (XLP) has backed down but Energy (XLE) and Materials (XLB) are in the overbought zone.

Ticker![][] Last![][] RSI7d![][] RSI7w![][] RSI7m![][] Zone (estimate)![][]
[XLE][] \*
54.03 70.54 72.34 49.38
[XLB][] \*
28.31 65.34 70.52 50.41
[XLI][] \*
23.55 60.3 66.54 43.89
[XLY][] \*
23.89 52.17 65.38 49.36
[XLP][] \*
23.34 49.7 65.76 47.68
[XLV][] \*
25.54 49.32 59.02 41.63
[XLF][] \*
12.41 57.63 65.93 39.54
[XLK][] \*
18.43 72.91 72.47 52.56
[IYZ][] \*
18.40 68.43 67.9 47.26
[XLU][] \*
27.83 69.79 66.25 42.55

[S&P 500 ETF]: http://traderpau.files.wordpress.com/2009/06/2009-06-12-spy.png [S&P 500 ETF]: http://traderpau.files.wordpress.com/2009/06/2009-06-12-spy_prop.png