Today’s One Chart is the Financial Sector SPDR ETF, in a follow-up to our post in early June on the confluence of resistance levels. As we’ll discuss in this article, the XLF is displaying a similar combination of factors, all suggesting weaker prices and likely underperformance as the sector continues to struggle.

The biotechnology industry has apparently completed a transition from accumulation to consolidation to distribution. A confluence of support levels around $125 for the iShares Nasdaq Biotechnology ETF (IBB) give a clear potential downside target as further weakness appears likely.

Today’s chart is the Nasdaq 100 index, and the focus is on bearish divergences. A bearish divergence is when you have higher highs in price and lower peaks in momentum, in this case in the form of RSI.

I love to use the Consumer Discretionary vs Consumer Staples ratio as a way of gauging offense vs defense in the equity markets. The top panel shows the ratio of the XLY (Consumer Discretionary Sector SPDR) versus the XLP (Consumer Staples).

The chart of Health Care (XLV) is interesting first and foremost because it is a sector that has been remarkably resilient.

I wanted to share with you a quote from Jesse Livermore, which says “there is only one side of the market and it is not the bull side or the bear side, but the right side”.

At the end of September, the Telecom Services Sector will cease to exist, and the new Communication Services sector will be born.  I created this post following a morning of Googling to try and gather the best information out there.  Let's review what is happening, how it will affect existing sectors, and how investors should think about this change.

Two themes stand out as I review the charts this week.  First, the leadership of the supersized MANIA names that seem to dwarf everything else.  Second, charts in the Financials sector that have been notable underperformers over the last six weeks.  Let's review both of themes and let the charts tell the story.

"Amazon makes no sense," begins a recent article trying to grasp the impact of this one company on so many other companies and industries.  As Bloomberg points out, "Executives at the biggest U.S. companies mentioned Amazon thousands of times during investor calls last year, according to transcripts—more than President Trump and almost as often as taxes."

One of the best ways to get color on leadership in the equity markets is to look at the 11 sector ETFs.  With the S&P 500 testing the top of a clearly defined range, it seemed an opportune time to review these sector charts and compare them to the broader index.