Are sensitivity levels used in the SELinux Targeted policy?

I can’t find any references to sensitivity levels in RHEL’s documentation on the targeted policy. It seems like the entire policy is configured for s0 and only the category values can vary (c0-c1023).

Intuitively, I’d expect to be able to set the sensitivity level on objects, but for those sensitivity levels not to have the “no read up, no write down” properties of the mls policy.

Is this correct?

As far as I know, the targeted policy only makes use of type labels and confines only daemons and processes, if there is a policy written for them. Other processes run unconfined.
Theoretically you could modify the policy by writing modules and contexts to enforce sensitivity levels. But maybe it would be easier to just go with the mls policy.