Weekend Video – Gaps, Dips and Rebounds, Normalized ROC Remains Bullish, Harami Patterns within Triangles in Tech-Related ETFs (Premium)

It was a week full of gaps, dips and rebounds. For example, SPY gapped down on Tuesday and tested its 50-day SMA on Wednesday. An inside day formed as the ETF rebounded on Thursday and another gap formed on Friday as SPY surged into Tuesday’s gap zone. Several tech related ETFs formed harami candlestick patterns near support and gapped up on Friday. These gaps, while short-term, are bullish as long as they hold and bigger triangle patterns could be taking shape. Today’s video will focus on three such ETFs as they reverse their downswings within these triangles. Elsewhere, oil and gold remain strong, while the Dollar and bonds are trending lower. Small-caps (IJR) remain stuck in a range and the Regional Bank ETF is holding its breakout. The Airline ETF is still setting up bullish, the Oil & Gas Equipment & Services ETF is forming a pennant and the Biotech ETF is testing the 200-day. Below are bullet points and the order of play:

Broad Market Analysis

  • SPY Surges into Gap Zone
  • IWM Remains Stuck in Consolidation
  • Normalized ROC Remains Bullish
  • Composite Breadth Model Remains Bullish
  • Yield Spreads Flatten, but Remain Narrow (bullish)
  • Fed Balance Sheet Hits New High
  • Bonds Continue Lower
  • Oil Holds Breakout Gains
  • Gold Challenges 200-day
  • Dollar Continues Lower

ETF Highlights

  • New StochClose Trend Signals (SLV, GDX)
  • 52-week Highs Narrow (KRE, XLF, XLB, FCG)
  • Bearish StochClose Signals Near 200-day
  • A Bigger Triangle for IJR?
  • Candlestick Reversals for QQQ and XLK
  • Oversold Bounces for XLI and XLF
  • XLE and XLB Hold Strong
  • Support Bounce and RSI W’s (IGV, FDN)
  • Higher Low, Harami and RSI W (CIBR)
  • Let the Dust Settle (ITB and IHI)
  • KRE Holds Breakout
  • JETS Sets Up with Bullish Wedge
  • IBB Battles 200-day
  • A Bullish Pennant for XES
  • ATRs Trigger in the Copper Complex and DBA
  • China A-Shares Outperform Large-caps
  • India Remains Strong
Thanks for tuning in and have a great weekend!

-Arthur Hill, CMT
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