Ralph Acampora: Here are your new market leaders

The technical analysis legend makes an important point in his June newsletter on the heels of 2013’s first stock market correction…

An old Wall Street adage: “During a market sell-off/correction, the sectors that go down the least and/or suffer minimal technical damage are the new leaders”. Between May 22nd and June 6th, the best performing sectors relative to the -5.2% decline in the S&P 500 were: Technology (XLK) down a mere -3.71% and Industrial (XLI) off only -4.8%. The two worst performers were Telecommunication (IYZ) -6.66% and Utility (XLU) – 10.23%

You know which hunting grounds the technicians are focused on for new buys…

Go read the whole thing, Ralph has been more bullish this year, and thus more correct, than many. He thinks Dow Theory will point us toward when this correction can end.

Source:

New York Institute of Finance