State Street Investment Management has Exchange Traded Funds (ETF) focusing on eleven – S&P 500 (SPX) sectors. An examination of six sectors reveals fascinating momentum data for the broader U.S. stock market.
Daily charts courtesy of Trading View examines the three most bullish sectors; Industrials (XLI), Materials (XLB), and Technology (XLK).
On 06/18/26 only one sector out of eleven made a new all-time high – XLI. This roughly corresponds with the Dow Jones industrial Average making a new all-time high on 06/17/26.
The Materials sector (XLB) is close to a new high yet note its high came in mid – February.
The action of the Technology sector (XLK) is particularly interesting. The 06/18/26 blog “Micron Technology Inc. Update – 06/18/26” illustrated this stocks all-time high made on 06/18/26. XLK failed to reach a new high on 06/18/26. Even within the powerful technology sector there’s a bearish divergence.
The next charts examine the Finance (XLF), Energy (XLE), and Consumer Staples (XLP) sectors.
XLF made its all-time high in early January 2026. Please note the steady decline into late March followed by a so far, three wave rally. Perhaps this is an Elliott impulse wave down and a three-wave corrective rally. If so, the next decline could return to at least the late March bottom.
The Energy sector XLE peaked on 03/30/26 and made a new decline low on 06/18/26. The 06/16/26 blog “Crude Oil Update – 06/16/26” illustrated that Crude Oil broke below important support levels and was likely to continue to drop.
Note that the XLE peak came at about the same time that XLF and XLP were making bottoms. An argument could be made that declining Crude Oil and Energy sector stocks is bullish for the broader U.S. stock market. We could have an answer to this question next week.
Consumer Staples (XLP) peaked in mid-February and declined until mid- April. The 05/19/26 peak was just above a Fibonacci .618 retrace of the February to April drop. The 06/16/26 peak failed to reach the 05/19/26 top and has since dropped sharply. XLP could be headed to at least its mid – April bottom.
In a healthy stock bull market almost, all sectors should be making new highs. This is not what’s happening in the U.S. stock market.
The selective nature of the recent rally implies at least a multi-week decline in U.S. stocks may have already begun.
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