Bespoke's Sector Snapshot

The charts below are from our weekly Sector Snapshot available to Bespoke Premium members.  These are one-year trading range charts of the S&P 500 and its ten major sectors. When the price of the sector is in the light blue zone, it is considered neutral.  When the price moves into the red zone, it is beginning to get overbought.  When it moves above the red zone, it is well into overbought territory.  (The same is true for oversold conditions in the green zone.)  As shown, most sectors are currently right at overbought territory.  The risk/reward tradeoff is definitely starting to favor the risk side at the moment, so be wary when making trades.  While a short-term pullback is probably in the cards, most sectors (except for Financials and Consumer Discretionary) are in uptrends, so investors should take advantage of declines to build positions.