Dean Christians, senior research analyst at SentimenTrader also is worried about corporate earnings and, as a result, bullish on defensive names. In a report Thursday, he noted the Citigroup U.S. Earnings Revision Index has fallen for 14 straight weeks, a scenario that underlines the case for defensive stocks.
"Similar streaks preceded an unfavorable outlook for the S&P 500," he wrote. "Cyclical sectors typically suffered, whereas defensive groups outperformed the broad market. "