As the major indexes work their way back to retest the lows, we will keep a close eye in the Macro Review on how that turns out, but while it’s going on we will also be watching the sector and subsector worlds closely. Certainly comparing defensives versus growth and cyclical type investments is one thing to keep an eye on; but emerging relative strength or weakness provide the best opportunities to maneuver the landscape Whether or not the retest holds, this type of battle ground action can help separate strong and weak sectors and subsectors. If the retest does hold, the strongest and subsectors won’t come likely come anywhere near their previous lows and the weakest ones will overshoot. If it doesn’t hold, then defensives will keep their relative strength, but may not show much if any absolute strength.  Another leg down would likely take out most of the leaders just as collateral damage. I am not saying that is where we are, just that if we do lose these levels we could see some panic finally set in over the immediate term, which might actually help in the bottom process if it were to happen.  While all this plays out, we watch and study sectors and subsectors to keep a tab on where money is flowing too and from.