Modest Recovery In REITs And Utilities Among The 11 S&P 500 Sectors

Each of the 11 sectors of the S&P 500 has its own ETF. 9 of 11 are rated Underweight.

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

Buy weakness to my quarterly value level of $82.93 and reduce holdings on strength to my monthly risky level of $88.22.

Materials Sector SPDR Fund (XLB) – Underweight

My semiannual and annual pivots are $56.21 and $59.99, respectively. Reduce holdings on strength to my monthly and quarterly risky levels of $62.48 and $62.62, respectively.

Industrial Select Sector SPDR Fund (XLI) – Underweight

Buy weakness to my semiannual value level of $71.16. Reduce holdings on strength to my annual risky level of $79.31.

Consumer Discretionary Select Sector SPDR Fund (XLY) – Underweight

Buy weakness to my semiannual value level of $97.61. Reduce holdings on strength to my annual risky level $107.96.

Consumer Staples Select Sector SPDR Fund (XLP) – Underweight

Buy weakness to weekly value level of $48.72. Reduce holdings on strength to my semiannual and annual risky levels of $60.75 and $63.34, respectively.

Energy Select Sector SPDR Fund (XLE) – Underweight

Buy weakness to my semiannual value level of $59.88. Reduce holdings on strength to my quarterly, monthly and annual risky levels of $70.36, 75.16 and $88.91, respectively.

Financial Select Sector SPDR Fund (XLF) – Underweight

My semiannual and annual pivots are $26.69 and $26.77, respectively. Reduce holdings on strength to my monthly and quarterly risky levels of $30.67 and $31.98, respectively. The June 2007 high is $30.83.

Utilities Select Sector SPDR Fund (XLU) – Overweight

Buy weakness to my quarterly and monthly value levels of $49.34 and $49.28, respectively, and reduce holdings on strength to my annual and semiannual risky levels of $54.46 and $58.60, respectively.

Health Care Select Sector SPDR Fund (XLV) – Underweight

Buy weakness to my weekly value level of $76.15. Reduce holdings on strength to my annual and semiannual risky levels of $88.09 and $91.42, respectively.

Technology Select Sector SPDR Fund (XLK) – Underweight

Buy weakness to my semiannual and annual value levels of $61.66 and $60.55, respectively, and reduce holdings on strength to my monthly and quarterly risky levels of $70.66 and $72.96, respectively.

iShares Transportation Average ETF (IYT) – Underweight

Buy weakness to my weekly value level of $176.12 and reduce holdings on strength to my annual risky level of $204.61. My semiannual pivot is $188.79.

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