Market/ETF Video – Large-caps Lead, High-Beta and Small-caps Lag, Key Supports to Watch going Forward (Premium)

The Composite Breadth Model is bullish, but the market is quite split and I am focused on the swings of late. In particular, the upswing since mid March. Large-caps and high-quality stocks are leading this upswing, while small-caps and high-beta are lagging. This suggests a rather diminished appetite for risk. Even so, most ETFs are in short-term uptrends since March and I am focused on the early April lows for signs of a reversal.  

Broad Market Analysis

• Composite Breadth Model is Positive
• %Above 200-day SMA Indicators Show Split Market
• BBB and Junk Bond Spreads Sharply Narrow
• 20+ Yr Treasury Bond ETF Remains Range Bound
• Dollar Swings Lower (UUP)
• Gold Grinds Higher after Becoming Overbought (GLD)
• Oil Consolidates at Resistance (USO)

ETF Trends, Patterns and Setups

• Choppy Uptrend for the S&P 500 SPDR (SPY)
• SPY Becomes Short-term Overbought and Remains So
• Watching Upswings in the S&P 500 EW and Small-cap Growth ETFs (RSP, IWO)
• Defensive Groups Extend on Breakouts with Big Moves (SPLV, XLV, XLP)
• Aerospace & Defense ETF Nears New High (PPA)
• QQQ and XLK Consolidate after Big Advances
• High-Beta ETF Holds Upswing as ARKK Stalls (SPHB, ARKK)
• Cloud Computing and Internet Struggle to Hold Breakouts (SKYY, FDN)
• Fintech and Mobile Payments Break Out (FINX, IPAY)
• Semis and Cybersecurity Stall as Software Extends (SOXX, CIBR, IGV)
• Biotech iShares Extends as Biotech SPDR Breaks Out (IBB, XBI)
• Small-caps are Seriously Underperforming (IWM, IJR)
• RCD, Retail and Housing Maintain Upswings (RCD, XRT, ITB)
• Palladium and Copper Get Break Outs (PALL, CPER)
• Platinum ETF Leaves Gold in the Dust (PLTM)
• Gold and Silver Miners ETFs Remain Overbought (GDX, SIL)