The mid-week shakeout of the $SPX gave us a nice setup to do some buying. As I mentioned last week, seeing a cluster of sectors in the Red (Lagging) box is often a good setup for the overall market to run. It looks like this will play out - so we'll see how far it can run.

Even with the last couple of days being choppy around earnings, the $SPX sectors still look like they want to go up. $XLK (Tech) is still moving strongly up and to the right in the Green (Leading) box, and that tends to drive the overall market direction. Also watching $XLP

The $SPX sectors are reflecting the market pull-back across the board. Most sectors are pushing down and left into the Red (Lagging) box, suggesting weakness could continue for another week or two. But if this trend continues, I'd be watching for a strong setup for a year-end

An ugly-ish week for the $SPX sets us up for a potentially nice rally. Several sectors are now pushing out (and upward) of the Red (Lagging) box. If XLK could join this movement, the broad indexes could rally from here. Getting close!

Happy Friday! This is how I picture StockCats

Now that $XLY and $XLK are deep into the Red (Lagging) box, we now have a nice set-up to watch for in the $SPX index. When those two sectors start to turn upwards, a rally will likely begin that could run for a while. Close, but not quite there yet. Be ready!

We could see the $SPX run up from here, as we're finally seeing XLK and XLY turn upwards from inside the Red (Lagging) box. And several other sectors are doing (or have done) the same. The setup is there for a December rally.

Stock splits in several of the Sector SPDR ETFs this week is messing up the RRG graph. The sector ETFs that didn't split this week are mostly looking good - moving up and into the Green (Leading) box. So while the market has been going up, the movement hasn't been that

Maybe that's it for now on the $SPX rally? Most sectors aren't heading in the right direction to suggest much of a continuation from here. That could abruptly change as we head into the last half of December, as the month historically does well starting around the 15th. I

The $SPX tends to start a year-end rally around December 15th. So perhaps today's market weakness sets us up for a rally.

I'd like to be more bullish on the $SPX right now, but the RRG chart is uninspiring. Most sectors are falling out of the Leading box down into the Weakening or even Lagging box. Normally, to me, this would suggest I prepare for further downside. This isn't in agreement with the

Data over Dogma

Santa Claus rally seasons is here. I just wished the $SPX sectors were in more agreement. While many are pointing upwards and into the Blue or Green boxes, the overall set still looks like a mess. Hoping for the best, but this chart isn't giving me too much optimism about a rally

Exactly!

Still not loving the mixed messages given by the $SPX sectors on the RRG Chart. It looks like indecision is still dominating the short-term movement. I could make a case for the market to eventually break-out to the up-side. But I need to see more confirmation first. Time to be

The $SPX is still looking messy on the RRG chart, but we could start to see more sectors turning upward and out of the Red/Yellow boxes. That could set us up for a more sustained rally this month.

The $SPX sectors are looking stronger than the overall index this week. I would have expected more of a rally off the mid-week lows, but trading continues to be meh and sideways. Maybe we start a run after the holiday weekend? But I guess the strength has been in the smaller %

Most of the $SPX sectors look good, but XLK (Tech) and XLF (Financials) are heading in the wrong direction. If they can boths start pushing upwards into the Blue (Improving) box, then the market will be able to run up more easily.