All 11 S&P Sector ETFs Are Rated Underweight

There are no safe havens as the bear market spreads to all 11 S&P Sector ETFs

The stock market is entering bear market territory across all major equity averages and this includes the 11 S&P sector exchange-traded funds. There are no safe havens.

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) – Underweight

This ETF is below its 200-week simple moving average of $91.82. The weekly chart is negative with the ETF below its five-week modified moving average at $90.79. My quarterly pivot is $87.39 with my monthly and semiannual risky levels at $100.17 and $102.40, respectively.

Materials Sector SPDR Fund (XLB) – Underweight

This ETF is below its 200-week simple moving average at $51.55. The weekly chart is negative but oversold with the ETF below its five-week MMA of $51.68. The ETF is below 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) – Underweight

This ETF has a negative but oversold weekly chart with the ETF below its five-week MMA of $67.42. The ETF is also below its 200-week simple moving average of $63.75/ 70.77. The ETF is well below semiannual and monthly pivots at $72.37 and $73.64, respectively.

Consumer Discretionary Select Sector SPDR Fund (XLY) – Underweight

This ETF has a negative weekly chart with the ETF below its five-week MMA of $101.24. XLY is above its 200-week simple moving average at $88.70. XLY is below my semiannual and annual pivots of $109.52 and $107.96, respectively.

Consumer Staples Select Sector SPDR Fund (XLP) – Underweight

This ETF has a negative weekly chart with the ETF below its five-week MMA of $53.05. This ETF is also below its 200-week SMA of $52.58. XLP is below my monthly and quarterly pivots are $54.14 and $54.37, respectively.

Energy Select Sector SPDR Fund (XLE) – Underweight

This ETF has a negative but oversold weekly chart with the ETF below its five-week MMA of $62.51 and is below its 200-week SMA of $69.27. XLE is below my quarterly pivot at $72.88 and my quarterly value level lags at $43.74.

Financial Select Sector SPDR Fund (XLF) – Underweight

This ETF has a negative weekly chart with the ETF below its five-week MMA of $24.79 and now below its 200-week simple moving average of $22.97. XLF is below my annual, monthly and semiannual pivots are $26.77, $26.94 and $27.49. The June 2007 high is $30.83.

Utilities Select Sector SPDR Fund (XLU) – Underweight

This ETF has a negative with the ETF above its five-week MMA of $54.40. The 200-week SMA is $49.31. XLU is below my semiannual, quarterly and annual pivots at $53.86, $54.42 and $54.46, respectively. The all-time high of $57.23 was set during the week of Nov. 17, 2017. Its 2018 high of $57.17 was set on Dec. 13.

Health Care Select Sector SPDR Fund (XLV) – Underweight

This ETF has a negative weekly chart with the ETF below its five-week MMA of $87.86. The 200-week simple moving average is $77.16. The ETF is below my annual and quarterly pivots at $88.09 and $86.50, respectively.

Technology Select Sector SPDR Fund (XLK) – Underweight

This ETF has a negative but oversold weekly chart with the ETF below its five-week MMA of $64.24. The 200-week simple moving average is $53.65. The ETF is below my annual pivot at $60.55.

iShares Transportation Average ETF (IYT) – Underweight

This ETF has a negative but oversold weekly chart with the ETF below its five-week MMA at $175.76 and below its 200-week SMA at $163.83. The ETF is below my semiannual pivot is $181.19.

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