A Change In The Market

The SP500 has been chopping around within a range of 1120-1220 and it appears went nowhere. But if one look at various sectors within the market, one could sense the market’s characteristic is changing, at least for the near term. This change does not imply the market is reversing direction and heading toward a new bull trend. But the price actions of the sector ETFs shown on the following chart are signaling a possible near term rally could be in the offing. Unless something unexpected happen in the Euro zone, the market appears to have adjusted to whatever will most likely to occur.

(Click on the chart to get a larger view. The red lines are likely resistance & support levels)