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Good morning CVELU, Here’s what I’m watching in the markets this week.
There are a few sectors worth watching this week. Healthcare has reached the 26,000 target I highlighted last week after what I believe was a major bottom formed near 22,000 a few weeks ago. After such a strong rally, a healthy pullback into the 23,000 to 24,500 zone would be a normal pause before the uptrend resumes.
Materials is sitting on an important support level and looks well placed for a bounce. Financials continue to move sideways, so I'm staying on the sidelines until a clearer trend develops. Consumer discretionary remains in an uptrend but could run into resistance around the 4,000 level, while the communication sector is testing a key support level that needs to hold.
Consumer staples remain one of the market's strongest sectors after breaking out of a five-year downtrend. Overall, my focus remains on the defensive sectors. Healthcare, consumer staples, materials, energy and the broader commodities sector. I also expect gold, silver, platinum and oil to put in a low third week and at least a decent short-term rally from current levels, making commodities one of the key areas I'm watching this week.
Have a great week.
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