XLV is looking tired after a long uphill run since June although the technicals are still positive as it continues to book new all time highs.
XLU has now moved into the top 3 slot, which typically heralds a decline in equities as money shifts to the safety of the utilities sector which, unfortunately, has few opportunities for option players since the premiums are so thin.
As of yesterday's close GLD has moved to #4 slot, continuing it's slow decline in momentum. It too has had a stellar run and is due for a rest.
In the big picture T3 continues to excel the S&P although the last couple days have been rocky.
Momentum is likely to be earnings driven for the next couple weeks as well as forward guidance provided by those reporting. This is typically a period of pumped volatility as the uncertainty factor becomes more muddled as traders and money managers hedge their positions.
As a trader. my strategy during earnings season is usually to stand back or trade small.
Past experience has shown me that this is not a time to get risky with capital.
