Market/ETF Review and Outlook Video
The Composite Breadth Model is bullish and at +5, but I would characterize this as a fragile +5. Today’s video will dive into the five inputs that make up the model and show why the +5 looks fragile. SPY and QQQ are in uptrends and continue to lead, but the equal-weight S&P 500 and IWM are in downtrends and seriously lagging. There is a big disconnect in the market right now and there are still some large pockets of weakness. Today’s video will also look at shaky semis (SOXX), strong precious metals, strengthening Treasury bonds, a breakout in Healthcare and a failure in copper.
Broad Market Analysis
- Composite Breadth Model is Positive, but Fragile
- BBB and CCC Spreads Remain Elevated and Show Stress
- 20+ Yr Treasury Bond ETF Attempts Pennant Breakout (TLT)
- Dollar Swings Lower (UUP)
- Gold Holds Strong as Silver Turns Frothy (GLD, SLV, PLTM)
- Gold and Silver Miners ETFs Become Even More Overbought (GDX, SIL)
- Oil Surges to Resistance Zone (USO)
ETF Trends, Patterns and Setups
- SPY and QQQ Remain in Uptrends as Large-caps Lead
- Equal-weight S&P 500 ETF in Downtrend and Seriously Lagging (RSP)
- Russell 2000 ETF Breaks Triangle Line and Forges Lower Low (IWM, IWO)
- Industrials and Finance Sectors are Seriously Lagging (XLF, XLI)
- QQQ and XLK Lead, but Become Short-term Overbought
- Semiconductor ETF Breakout is Looking Shakey (SOXX)
- Software and eSports ETFs Extend on Breakouts (IGV, ESPO)
- Water and Aerospace-Defense ETFs Fall after Breakouts (PHO, PPA)
- Homebuilders ETF Fails to Hold Breakout (XHB, ITB)
- EW Consumer Discretionary and Retail Break Out (RCD, XRT)
- Healthcare-Related ETFs Trigger Breakouts (XLV, IBB, IHF)
- Consumer Staples SPDR Extends on Breakout as Utes Challenge (XLP, XLU)
- DB Base Metals and Copper Fail to Hold Breakouts (DBB, CPER)
Thanks for tuning in and have a great day!