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The Lead-Lag Report: Resistance Everywhere

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As markets wait for the outcome of US presidential elections and the coming Greece austerity vote, internals hit all kinds of resistance and support levels. Clarity to come, or further confusion? We'll find out soon enough.

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Consumer Staples (XLP) – Punishing Defensiveness



Comments: Consumer staples appear to be rolling over as concerns grow over the fiscal cliff and taxing of dividends under an Obama administration, similar to utilities. More time is needed to see if this is noise, or the start of a trend.

Energy (XLE) – Broken Energy



Comments: Energy appears to be in the early stages of a real breakdown, unable to break past prior ratio highs. More time is needed to confirm, but those wanting to bet against the market might want to consider the role of energy as a laggard in the coming weeks.

Conclusion

Markets are, across the board, hitting resistance internally as uncertainty over the elections in the US and Greece dominate decision making. The corrective period remains with some mixed messages. More time is needed to get a clearer sense, but caution remains warranted.

Editor's note: This update is published every week exclusively for Minyanville, and is compiled by Michael A. Gayed, CFA, Chief Investment Strategist of Pension Partners, LLC.

Twitter: @pensionpartners
No positions in stocks mentioned.

This writing is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by Pension Partners, LLC in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Pension Partners, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

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