The market has rallied from its early March lows. Let's take a look at the various index components to see how they have done. We'll look at them from the largest percentage of the S&P to the smallest.
Information technology represents 18.3% of the S&P 500.
Click for a larger image.
This is a good looking chart -- it has rallied 51% from it's March low. Prices are above the 200 day EMA, indicating a bull market. This is a standard rally, controlled sell-off that forms a pennant pattern followed by a further rally pattern. Prices are currently above all the EMAs, all the EMAs are moving higher and the shorter EMAs are above the longer EMAs. In short, this is a bullish chart. The only major drawback is the strenght of the latest rally; no market can maintain that type of trajectory for an exended period of time.
Health Care represents 14% of the average.
Click for a larger image.
Like the technology area, this is a good looking chart as well. Prices have been in a clear uptrend since the beginning of March. We've seen some controlled/disciplined market sell-offs, but in general the trend is clearly higher. Also note that prices are above the 200 day EMAs. The 10 and 20 day EMA have crossed over the 200 day EMA and the 50 day EMA has as well.
Financials represent 13.6% of the S&P 500.
Prices just crossed the 200 day EMA, although the shorter EMAs are still below the 200 day EMA. However, prices are still in a clear uptrend. We have a strong rally, followed by a disciplined sell-off followed by a further rally. The shorter EMAs are all rising and the shorter EMAs are above the mose of the longer EMAs (with the exception of the 200 day EMA). In short, this is anlther great looking chart.
Energy represents 12.4% of the average.
This is not a bullish chart. Like the others, it rallied from the beginning of March. However, after it sold off it has yet to retake its previous highs. The chart is still in an upswing from that level and could still make it. And with oil in a new upswing anything is possible. In addition, this is not a bearish chart; it's neutral with prices vascilating in a 10 point range between (roughly) 44 and 54.
Consumer staples represent 12% of the average.
Prices are above the 200 day EMA, indicating a bull market. In addition, the shorter EMAs are above the longer EMAs, all the EMAs are rising and prices are above all the EMAs. Also note that we've had a strong rally followed by a disciplined sell-off followed by a rally. In short, this is a bullish chart.
Consumer discretionary comprises 9% of the market
This sector started to rise in early March. It formed a double top in early May/June then sold-off in a disciplined downward sloping pennant pattern. Since then it has rallied to new highs. Notice that prices are above the EMAs, all the EMAs are moving higher and the shorter EMAs are above the longer EMAs. This is a bullish chart.
Utilities comprise 4.1% of the average.
Utilities are in a clear uptrend. Notice that along the way the average has had some standard bull market pennant patterns (think standard sell-off). However, prices have continually moved higher. Prices have just crossed the 200 day EMA as has the 10 day EMA. In addition, all three shorter EMAs (the 10, 20 and 50) are all moving higher.
Materials comprise 3.5% of the average.
Materials rose from their march lows, reached a high in early June and then sold-off in a disciplined way. They next rose again, crossing the 200 day EMA indicating a move into a bull market. The shorter EMAs have also crossed the 200 day EMA.
Conclusion: With the exception of the energy sector all of the subsectors are in strong chart formations. This indicates that one sector is not driving this market, but all sectors are participating. In short -- it's a very encouraging sign.