I will post a Market Regime update later today (12-Feb) that covers breadth, yield spreads and interest rates.
The next report will be on Thursday, February 13th.
The weight of the evidence remains bullish for stocks with SPY and QQQ leading the broader market. The S&P 500 EW ETF (RSP), mid-caps and small-caps are lagging, but I am watching RSP as it forms a small wedge above the breakout zone. SPY has a bullish cup-with-handle pattern taking shape, and QQQ has a wedge breakout working.
The Finance SPDR (XLF) and Communication Services SPDR (XLC) are leading the sectors with new highs here in February. The Technology SPDR (XLK) is holding up as it surged off support. In particular, I am watching the Industrials SPDR (XLI) this week as it broke out of a small flag and the Utilities SPDR (XLU) has it holds its wedge breakout. These two sectors are important parts of the Global Infrastructure ETF (PAVE) and Infrastructure ETF (IFRA).
Many tech-related ETFs extended on their mid January breakouts and hit new highs. These include two Cloud ETFs (CLOU, SKYY), the Cybersecurity ETF (CIBR) and two AI-related ETFs (AIQ, ARTY). The Software ETF (IGV) extended on its wedge breakout. Semis continue to lag within the tech sector and the Mag7 ETF (MAGS) is dragging its feet as Tesla weighs.
Elsewhere, the Regional Bank ETF (KRE) and Insurance ETF (KIE) have yet to extend to new highs, but they are holding their wedge breakouts. The Digital Transformation ETF (DAPP) is trying to firm in a Bullish Setup Zone as the Bitcoin ETF (IBIT) forms a second wedge. We finished with a look at the Managed Futures ETF (DBMF).
If viewing this PDF in a browser, right click on the
chart to open as a new tab or window.
Use CRTL and the Plus or Minus keys (+ -) to zoom.
Video Headlines
– SPY Forms Bullish Cup-handle as QQQ Holds Breakout
– RSP Forms Small Bullish Wedge after Breakout Surge
– IJR and IWM Struggle with Breakouts and Lag
– XLK Holds Support and Maintains Uptrend
– XLC and XLF Tag New High After Breakouts
– XLI Goes for Short-term Breakout after Pullback
– XLU Breaks Out and Consolidates around Breakout Zone
– MAGS Struggles with Breakout but Holds Support
– AIQ and ARTY Lead AI-Related ETFs Higher
– IGV Extends on Wedge Breakout
– KBE, KRE and KIE Holds Wedge Breakouts
– ITA Consolidates with Pennant Near New High
– IFRA and PACV Break Out of Small Wedges
– IBB and XBI Fall Back below Breakout Levels
– GLD Leads with New High
– IBIT Forms Second Wedge with Short Pullback
– Managed Futures ETF Shows Signs of an Upturn