Stocks are going to limp into Tuesday, at least that’s the way futures are setting up. It’s not surprising to see profit taking after a strong up day during a correction. Top Equity News believes the indexes will eventually come into contact with their 200-day moving averages; meaning more downside could be just over the horizon.
However, before Wall Street gets to the crest up yonder, the relief rally could take the NASDAQ to 2900, the S&P to 1340, and the Dow to 12,700. Those are the support levels that failed, leading to the markets waterfall declines last week.
Support on the way down is usually resistance on the way up.
There could be a limited trading opportunity for investors on the upside. TEN’s research shows that the indexes rarely break their 200-day averages on their first attempt. They typically hit the mark and bounce, then hit the mark and bounce, and then on the third attempt and beyond is when it becomes very dangerous to buy.
That’s why Top Equity studies the sectors and how they might perform going forward. You’ll want to own stocks from industries that have the look of over-performance and avoid the slackers.
Despite a horrible week, the list of Buys and Sell are shallow this week. TEN expected to find many more in the sell columns than we did.
EMERGING BUY: industries with positive technical analysis traits that are in the early stages, indicating possible above average returns in the near-term:
Medical Equipment
Industrial Transportation
Internet
Recreational
MATURE BUY: industries that have outperformed and their charts suggest the above average returns could continue:
Biotech
Specialty Construction
Pipelines
Footwear
MATURE SELL: industries that have underperformed and, based on their current chart patterns, could continue to lag:
Asset Manager
Business Training
Investment
Financial Services Companies
Home Improvement (Thanks Lowes)
EMERGING SELL: industries that have fresh negative technical analysis set ups and could have subpar performance in the weeks ahead:
Banks
Personal Goods
Sector Selector: Thin Pickings Despite Big Selloff is an article from: 
