Market/ETF Video – Weight of Evidence Bearish, Large-caps Lagging, Precious Metals Leading (Premium)

Market/ETF Review and Outlook Video

The Composite Breadth Model turned negative on December 19th and remains negative as we start the new year. There are some pockets of strength within the S&P 500, but these are overshadowed by relative weakness in large-caps. I remain defensive and focused on ETFs that show relative strength. These include housing, healthcare, insurance, defense and water. Precious metals are also showing upside leadership.  

Broad Market Notes

  • Composite Breadth Model is Negative
  • %Above 200-day SMA Shows Split Market
  • Yield Spreads Diverge as Junk and AAA Widen
  • SPY in Long and Short-term Downtrend
  • Equal-weight SPX Leads, but Trend is NOT Up
  • QQQ is Leading Lower and Trending Lower
  • TLT Gets Oversold Bounce within Downtrend
  • 10-yr Treasury Yield Holds Breakout
  • Dollar Bullish ETF Gets Oversold Bounce below 200-day
  • Gold Extends on Breakout

ETF Trends, Patterns and Setups

  • ETF Trend and Rank Table Update
  • Four Diverse ETFs Showing Relative Strength (ITB, KIE, PPA, PHO)
  • Healthcare ETFs Outperforming Broader Market (XLV, IBB, XBI, IHF)
  • Networking ETF Tests Support Zone and 200-day (IGN)
  • MLP ETF Firms Near 67% Retracement (AMLP)
  • Oil Breaks Rising Wedge Support (USO, DBE)
  • XLE and XES Fail to Follow Through
  • XOP and FCG Break Pennant Support
  • Short-term Bearish Continuation Patterns (SPY, RSP, XLI)
  • Tech ETFs Lag Overall (SKYY, CIBR, FINX, FDN, IPAY)
  • Tech, Semi, Retail and Banking ETFs Break Down (XLK, SOXX, XRT, KRE)
  • Base Metals ETF Breaks Down as Copper Stalls (DBB, PALL, CPER)
  • Gold, Silver and Platinum Hold Strong (GLD, SLV, PLTM)
Thanks for tuning in and have a great day!

-Arthur Hill, CMT
Choose a Strategy, Develop a Plan and Follow a Process

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