Bear corner: the energy and natural resources sectors have entered a downtrend

The momentum of the bull market of the first quarter of 2012 was interrupted in the first few days of the second quarter. We reported earlier that the energy and natural resources sectors have pulled back into bearish territory. It is worrisome for us to see natural gas and other commodity stocks also entering a downtrend. Should additional key sectors pull back, we would see an increased risk of a market correction or reversal.

FFGCX chart

Fidelity Global Commodity Stock fund (FFGCX, last change: -0.48%)

 

FSNGX chart

Fidelity Select Natural Gas fund (FSNGX, last change: -0.70%)

 

Technical analysis screens are provided by FidelitySignal.com 

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