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Coronavirus Fears Lead to the First 1% Drop for the S&P 500 Since October; All Sectors Lower on the Day

Key Chart – Communication Services Select Sector SPDR – XLC 

The Communication Services Select Sector Fund (XLC) has a Very Bullish Chaikin Power Gauge ETF Rating and has been leading the SPY since the start of the year. The OB / OS Indicator is moving lower from an overbought level and Chaikin Money Flow is bullish. XLC is above the rising long-term trend line and has a bullish Power Bar ratio at 4 to 2.   

Today’s Chaikin Signals – S&P 500

  • Oversold Buy: BBY, DVN, LDOS, MYL, NTAP, REGN, WDC
  • Relative Strength Breakout: AGN, COO, HOLX, IT
  • Momentum Breakdown: NBL, TSN
  • Relative Strength Sell: IPGP, JCI, MDLZ, NLSN, VZ, XLNX
  • Relative Strength Breakdown: BWA, IPGP, LIN, NTRS

Stock of the Day –  Charles River Labs. (CRL) – Very Bullish Rating

Charles River Labs (CRL) has a Very Bullish Chaikin Power Gauge Rating and has been outperforming the SPY since November. The stock is oversold based on our indicator and Chaikin Money Flow is bullish. CRL is above the rising long-term trend line and price-based support near $150. Above $146.50, the stock is likely to move higher.   

Market Commentary/Looking Ahead

U.S. equities finished lower in Monday trading as investors remain concerned about the coronavirus. All sectors finished lower on the day. Energy and Technology were the worst performers. Defensive sectors outperformed. Treasuries rallied with the curve flattening. The dollar was weaker vs the yen but stronger on the euro cross. Gold finished up 0.3%. WTI crude settled down 1.9%.

  • Outperformers: Utilities (0.30%), Consumer Spls. (0.32%), REITs (0.42%), Healthcare (0.74%), Consumer Disc. (1.53%), Financials (1.54%)
  • Underperformers: Energy (2.76%), Tech (2.36%), Materials (2.10%), Industrials (1.87%), Communication Svcs. (1.69%)

S&P futures are up 0.4% after US equities came under pressure on Monday. Asian equities were lower overnight. European markets are mixed. Treasuries are little changed to start the day. The dollar is mixed on the major crosses. Gold is up 0.1%. WTI Crude is down 0.4%.

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