Last week's sector update found a highly oversold situation across all the S&P 500 sectors followed. With the powerful rally this week, the Technical Strength numbers for the sectors have changed, and we are seeing patterns of relative strength and weakness among the sectors:
CONSUMER DISCRETIONARY: +60
CONSUMER STAPLES: 0
HEALTH CARE: -180
We can see that the sectors are nowhere near overbought, but are much closer to neutral trending levels in their technical strength. The most interesting shift is in energy, which has turned decidedly bullish. I'm watching commodities in general, gold and energy in particular, vis a vis the U.S. dollar, as the government progresses in its shift toward quantitative easing.