Below we provide our trading range charts for the S&P 500 and its ten sectors. We also provide some additional technical commentary for most of the charts. As shown, the S&P 500 is currently in the wedge pattern that most people have been talking about. When wedges like this form, the move following the eventual break to the upside or downside is more extreme than normal.
The same wedge pattern is currently in place for the Industrials sector as well. Technology and Telecom remain in downtrends, while Consumer Discretionary recently broke its downtrend and is currently consolidating. Energy, Consumer Staples, Materials and Utilities have all managed to stay above their lows from late 2007, which is a positive sign for the sectors.
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