Stocks perked up this week and we saw flag breakouts in several ETFs. Small-caps led the charge with IWM hitting a new high. QQQ even rebounded with a breakout, but is still lagging year-to-date. Strategically, the Composite Breadth Model remains in bull market mode. Tactically, the breakouts are holding and we will show how to monitor SPY and QQQ going forward. It was also a big week for Utilities and Consumer Staples, two defensive sectors. This leadership is captured on the ETF Ranking, Signals and Setups table. A number of ETFs remain oversold with bullish patterns and I will highlight five international ETFs with such setups. Bonds remain in the doghouse as the market prices in higher inflation. GLD is also in the doghouse, but diverged from TLT this week with a gap near a key retracement.
The charts below show the S&P 500 Trend and Thrust Models with indicators.