The S&P 500 SPDR (SPY) has gone nowhere since July, and that’s ok. Consolidations, corrections and pullbacks are all part of the process when it comes to uptrends. As the chart below shows, SPY is knocking on the prior highs and very close to a breakout.
Strength is broadening among the industry group and sector ETFs. In particular, several ETFs that were classified as trending lower and lagging have been upgraded to emerging leaders. I do not mean “Emerging” markets
Stocks have been mixed since summer with the major index ETFs trading in ranges the last three months. The S&P 500 SPDR and Nasdaq 100 ETF hit new highs before embarking on their trading ranges, while the S&P MidCap 400 SPDR and Russell 2000 ETF
The stock market took on a more offensive tone over the past week with some of the beaten down groups outperforming. In addition, some of the defensive leaders underperformed and even corrected. The Utilities SPDR, Consumer Staples SPDR and
My assumptions and biases are based on the bigger trend because it is the dominant force at work. When the trend is up, I view the cup as half full and expect more bullish resolutions than bearish resolutions.
The goal of this commentary is to cut through the day-to-day noise and focus on price action that actually matters. Noise can be in the form of news or random price fluctuations. Either way, we are often better off when we filter the noise and focus on what really matters. So what really matters? Trends …
The Semiconductor ETF held up much better than the broader market in September and a bullish pattern is taking shape.
The S&P 500 and Nasdaq 100 remain in good shape, the Russell 2000 remains in bad shape and the S&P MidCap 400 is caught in the middle. I am not going to read too much into relative and absolute weakness in small-caps because the Russell 2000 is always overreacting. We need to focus on the …
The State of the Stock Market – A Stock Picker’s Market Read More »
The ETF bag is mixed with SPY and the key sectors holding up, small-caps lagging and the SOXX forming a bullish pattern.
Even though the major stocks indexes are stuck ranges, the High-Low Lines are still rising and this is bullish.
When looking at charts, it is important to focus on what IS, not what MIGHT be. Let’s try with SPY.
This weekly commentary, featuring the S&P 500, Index Breadth Model and Sector Breadth Model, is designed to deliver an unbiased view of the current stock market environment. Models, while not perfect, provide a clear process driven approach for evaluating the market. Focusing on present signals, instead of future possibilities, models reflect the current state of …
The State of the Stock Market – Concerns Versus Evidence Read More »
Today’s report will rank and group my core ETF universe from strong uptrends to clear downtrends. Most of these ETFs are stock ETFs, but I also include several bond-related ETFs and a few commodity ETFs in my universe. The defensive groups continue to dominate with consumer staples, utilities and REITs leading the sectors. Within the …
The small-cap and mid-cap ETFs are underperforming and backing off resistance levels for at least the third time.