A year ago many market bellwethers had broken down below long term moving averages. The term Bellwether – was derived from the Middle English Bellwether which refers to the practice of placing a bell around the neck of a castrated ram – (a wether) in order that this animal might lead its flock of sheep.
Some improved market bellwethers are Goldman Sacs (financial), Disney & AutoNation (Consumer), Gilead (Health Care), FedEx (transports), Boeing & Caterpillar (industrial) and Apple (technology)
The Goldman Sachs Group Inc (GS) is a component of the Financial Select Sector SPDR ETF (XLF). Goldman leads most bull and bear market cycles having peaked in October 2007 and bottoming in November 2008. Goldman has completed a short 2015 bear phase and should lead the XLF higher through 2016 + thanks to Stockcharts.com for the point & figure