Contrary to seasonal tendencies, August has been a strong month for the stock market. The Sector PerfChart shows the S&P 500 SPDR (SPY) up just over 3% since July 31st. Of the nine sectors, the Industrials SPDR (XLI) and the Consumer Discretionary SPDR (XLY) are up over 4% and showing upside leadership. This is a positive because the consumer discretionary sector covers the consumer-spending portion of the economy and the industrials sector represents companies that benefit from capital spending.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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