ETF Trends, Patterns and Setups – Energy, Banks and Industrials Lead, Tech ETFs Try to Find Footing after Normal Retracements (Premium)

There are a lot of pullbacks to deal with today. Some pullbacks are shallow, some are deep and some are in between. Often, the bigger the advance, the deeper the pullback or retracement. Despite some big percentage declines, most of the pullbacks are normal in retracement terms (33 to 67 percent). Today’s charts will focus on these pullbacks. We will show ETFs that held up the best, ETFs that already broke out and ETFs that are poised to break out.

Note that a decline is deemed a pullback within a bigger uptrend as long as the bigger trend is up. Typically, this means above the 200-day SMA and with a bullish StochClose signal. We never know how far a pullback will extend or how long it will last. The best we can do is monitor the pullback and look for signs of a reversal. The current pullbacks are two to four weeks old, which puts them in the falling flag category and relatively short-term in nature.