2017 Market & Sector Performance and Trends...
2017 ends on a strong note as the Major Indices finish with above-average returns for the year. Leading the way higher was the Nasdaq, followed by the Dow Jones, S&P, Midcaps, and finally Small Caps. Sector rotation played a big role throughout this multi-year bull cycle that helped propel the indices repeatedly into fresh new high territory.
As we head into 2018, the uptrends remain well intact on multiple timeframes, so the burden of proof lies on the bears (sellers) once again. From a swing trading perspective, the Monthly and Weekly charts, combined with some intermediate and short-term moving averages (50-day and 20-day), should continue to serve as an excellent guide for trading with the trend and revealing any potential weakness.
The table below shows the Relative Performance VS. the S&P for the main 9 sectors... The Technology sector (XLK) dominated in 2017 while the Energy complex (XLE) lagged significantly relative to the S&P performance.
The 9 charts below show each sector and their 1-year price action for 2017... Traders should continue to ride the current momentum/trends until proven otherwise. Caution is warranted with Utilities (XLU) as they showed some aggressive distributions into year-end.
