ETF Update: Flag Breaks, Breakaway Gaps, A Few Hold Up, Failed Breakouts and Tepid Bounce in Bonds

This is a midweek update to address Monday’s price action in some of the ETFs in the core chart list. We saw a continuation lower in SPY and QQQ, but some of the tech-related ETFs held up relatively well. ETFs that held up relatively well during broad selling pressure are often the ones that lead on any bounce, even if it is just an oversold bounce. Elsewhere, we saw some bearish breakaway gaps in XLI and XLB. The biotech brothers, IBB and XBI, fell back with the broader market, but are holding their breakouts. REMX is holding above its Chandelier Exit, XME gapped down and close below this exit (failure). Gold did not offer a safe-haven on Monday, but the long term trend remains up as a bullish wedge takes shape. Even though TLT caught a bid as money moved into Treasuries, the bounce was not as strong as one would have expected. And finally, the High-Yield Bond ETF (HYG) fell and tested its 200-day SMA. You can see the relevant charts in the PDF link above.

ETF Chart Notes:

SPY and QQQ broke flag supports and remain in correction mode.

MDY and IJR broke below their falling 200-day SMAs.

XLI and XLB fell with bearish breakaway gaps.

XLV also gapped down and fell into a big support zone.

IGV, SKYY and FINX held up well and did not break their early Sep lows.

REM did not hold its breakout and fell sharply.  

IBB and XBI fell, but their bigger breakouts are still holding.

GLD fell, but remains above the 200-day with a bullish wedge.

XME failed to hold its breakout and closed below the Chandelier Exit.

REMX fell, but held up better and did not close below the Chandelier Exit.

TLT bounced as a safe haven, but the bounce was quite tepid.

HYG fell and is testing its falling 200-day SMA.

Thanks for tuning in and have a great day!

-Arthur Hill, CMT
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