9 of 11 S&P Sector ETFs Are Rated Overweight

Energy is rated underweight while technology is rated equal-weight.

The healthcare ETF is the only sector in bull market territory. Materials, industrial, energy, financial and technology are in correction territory. REITs, consumer discretionary, consumer staples, utilities and transports have double-digit gains from their 2018 lows.

Establishing weightings based up their weekly charts is the backbone of an Asset Allocation Model.

· An Underweight Sector Has A Negative Weekly Chart. A negative weekly chart shows the ETF below its five-week modified moving average with declining or oversold weekly momentum (12x3x3 weekly slow stochastic).

· An Equal-Weight Sector Has A Neutral Weekly Chart. A neutral weekly chart shows the ETF below its five-week modified moving average with rising weekly momentum, or above its five-week modified moving average with declining weekly momentum.

· An Overweight Sector Has A Positive Weekly Chart. A positive weekly chart shows the ETF above its five-week modified moving average with rising or overbought weekly momentum.

SPDR Dow Jones REIT ETF (RWR) – Overweight

This ETF is now above its 200-week simple moving average of $91.91. The weekly chart remains positive with the ETF above its five-week modified moving average at $93.45. My quarterly value level is $87.39 with my monthly and semiannual risky levels at $100.17 and $102.40, respectively.

Materials Sector SPDR Fund(XLB) – Overweight

This ETF is well above its 200-week simple moving average at $51.60 after setting a new 2018 low of $50.09 on Oct. 25. The weekly chart is positive with the ETF above its five-week MMA of $54.92. My semiannual pivot is $54.12 with my monthly, annual and quarterly risky levels at $56.84, $59.99 and $64.28, respectively.

Industrial Select Sector SPDR Fund(XLI) – Overweight

This ETF has a positive weekly chart with the ETF above its five-week MMA of $72.81. The ETF set its 2018 low of $66.99 on Oct. 29. The ETF is above my semiannual pivot of $72.37 with my monthly pivot at $73.64 and my annual and quarterly risky levels at $79.31 and $84.90, respectively.

Consumer Discretionary Select Sector SPDR Fund(XLY) – Overweight

This ETF has a positive weekly chart with the ETF above its five-week MMA of $108.24. XLY is above my semiannual and annual pivots of $109.52 and $107.96, respectively, with my monthly and quarterly risky levels at $117.72 and $118.36, respectively.

Consumer Staples Select Sector SPDR Fund(XLP) – Overweight

This ETF has a positive chart with the ETF above its five-week MMA of $55.37. This ETF held its 200-week SMA of $52.49 during the week of Oct. 12. My monthly and quarterly value levels are $54.14 and $54.37, respectively, with my semiannual and annual risky levels of $59.45 and $63.34, respectively.

Energy Select Sector SPDR Fund(XLE) – Underweight

This ETF has a negative weekly chart with the ETF below its five-week MMA of $68.20 and is below its 200-week SMA of $69.63.

XLE is below my quarterly pivot at $72.88 with monthly and annual risky levels of $77.58 and $88.91, respectively. This ETF set a new 2018 low of $63.44 on Nov. 23. My quarterly value level lags at $43.74.

Financial Select Sector SPDR Fund(XLF) – Overweight

This ETF has a positive weekly chart with the ETF above its five-week MMA of $26.86. My annual, monthly and semiannual pivots are $26.77, $26.94 and $27.49 and my quarterly risky level at $32.86. The June 2007 high is $30.83.

Utilities Select Sector SPDR Fund(XLU) – Overweight

This ETF has a positive weekly chart with the ETF above its five-week MMA of $54,59. The 200-week SMA is $49.27. XLU is above my semiannual, quarterly and annual pivots at $53.86, $54.42 and $54.46, respectively, with my monthly pivot at $55.76.

Health Care Select Sector SPDR Fund(XLV) – Overweight

This ETF has a positive weekly chart with the ETF above its five-week MMA of $92.65. My annual and quarterly value levels are $88.09 and $86.50, respectively, with my semiannual and monthly pivots at $92.80 and $91.23, respectively, and my monthly risky level at $97.58. 90.04.

Technology Select Sector SPDR Fund(XLK) – Equal-Weight

This ETF has a neutral weekly chart with the ETF above its five-week MMA of $68.92. My annual value level is $60.55 with a semiannual pivot at $67.19 and my monthly and quarterly risky levels of $74.99 and $77.77, respectively.

iShares Transportation Average ETF (IYT) – Overweight

This ETF has a positive weekly chart with the ETF above its five-week MMA at $192.63. My semiannual value level is $181.19 with my monthly and annual risky levels at $201.73 and $204.61, respectively. This ETF set its 2018 low of $175.50 on Oct. 29.

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