Arthur Hill, CMT

This is an update for the big three major index ETFs: SPY, QQQ and IWM. Stocks started strong on Tuesday, but ran into selling pressure and bearish candlestick patterns formed. SPY and IWM are in long-term downtrends and showing signs of weakness near key retracements. QQQ remains stronger, but I still think the big surge is a counter-trend bounce.

Today’s video starts with an overview of monthly seasonality and the equity curves for each month over the last 30 years. We then dive into the Index Breadth Model charts and show how the average stock in the S&P 500 is still struggling. I then look at SPX 20-day High-Low% and show the key levels to watch for SPY going forward. We finish with a ChartBook overview and StochClose rankings.

Today’s report shows that the S&P 500 equal-weight index has underperformed the S&P 500 since 2017 and the performance differential surged over the past year. Moreover, the average stock in the S&P 500 is still struggling. We also have an important bearish signal in the Sector Breadth Model and continued weakness in three key sectors.

In broad terms, it is a tale of three markets. First, we have a few ETFs near new highs, in clear uptrends and leading. Second, we have ETFs that are above their 200-day SMAs with above average retracements (>61.8%). Despite relative strength, these ETFs remain below their February highs. Third

This is just a quick update with two charts, SPY and QQQ. Both charts show RSI(14) and 20-day High-Low%, which is the percentage of 20-day highs less the percentage of 20-day lows for each index. This is a short-term breadth indicator that can help define the short-term trend. These charts were created with Optuma and chart is linked to a basic chart at StockCharts.

Today’s report will highlight a few ETF charts and then turn to the counter-trend bounces in the last three bear markets. After notching a 30+ percent gain on Wednesday and coming within 2% of the falling 200-day SMA, the S&P 500 turned down with a sharp decline on Friday. Technically, the short-term trend is still up for SPX, but it remains in a danger zone similar to prior bear market bounces.

A historical advance followed a historical decline as the S&P 500 got close to its late February levels and the scene of the crime. That crime was the breakdown that signaled the beginning of a bear market. Even though the surge over the last six weeks is also record breaking, it has yet to break the bear’s back. Today we will review the weight of the evidence and put this bounce into perspective.

Stocks went on a tear the last three days with small-caps and some forgotten groups springing to life. The S&P SmallCap 600 SPDR and the Russell 2000 ETF are up over 10% the last three days. The Retail SPDR is up around 10%, while the Regional Bank ETF surged 15.6% and the Home Construction ETF soared 17.76%. These are three days moves!

A battle royale is brewing as the long-term downtrends battle the short-term uptrends. Hmm, think I will bet on the heaviest fighter. Today we will try to handicap the winner and mark support for the big three (SPY, QQQ and IWM). I will also examine retracements in the key equal-weight sectors and dissect the signals in the sector breadth model. And finally, I will review recent trend signals in the sector SPDRs using the 125-day Full Stochastic and cover the Fed.

There are just a few clear uptrends, a handful of leaders and lots of counter-trend bounces. IBB and GDX hit new highs and are the leaders right now, while GLD, TLT and UUP are in clear uptrends. Then we get to the rest. Everything else is trading BELOW its prior highs, which were recorded in January or February.

Today we will start with some weekly charts to show performance since January 2018, and it ain’t pretty. I will then focus on the current bounce in the S&P 500 SPDR because it holds the key going forward. We will look at the danger zone for SPY and show that participation narrowed over the last week or so.

Today’s report will focus on the long-term trends for ETFs in the master ETF list (some 200). The vast majority are in downtrends, but 20 or so are bucking the selling pressure or holding up relatively well. I will also talk about trend signals versus setup signals. This report includes a trend table, some scatter plots and charts separating the relatively strong from the relatively weak.

Today we will review the long-term trend evidence for SPY and the recent uptick in volatility with a new twist on the Average True Range (ATR). I will then show a custom breadth indicator measuring 20-day highs and lows in the S&P 500 and finish with the danger zone for SPY. This post also includes a PDF file with charts for the 11 sector SPDRs.

Well, it was another wild week in the markets and there is a lot to cover today. They, and I do mean the infamous “they”, that the four most dangerous words in investing are: It’s different this time. In general, I subscribe to this thesis because trading psychology and human emotions have not changed.

This is one moody market. Less than three weeks ago, the mood was pessimistic as the S&P 500 hit a 52-week low with a 30+ percent plunge. Flash forward 12 days and the S&P 500 is up over 20% and the mood has changed to optimistic. Would you want to be involved with something showing these kinds of mood swings?

The bulk of the evidence remains bearish and this means bounces are expected to fail at some point. Picking that point is, of course, a whole other ball game. Keep in mind that the S&P 500 fell some 33% from February 19th to March 23rd and hit a 52-week low on March 23rd