Weekend Video – Small-caps Fail to Hold Breakout, SPY Takes a Hit, QQQ holds Up, TLT Surges, Gold Breaks Down (Premium)

It was quite an eventful week with the 10-yr yield falling sharply, the 5-yr yield surging, gold reversing its upswing and stocks taking a hard hit the last three days. Tech and Healthcare are holding up relatively well as Industrials, Finance, Materials and Consumer Staples led the decline. Mid-caps fared the worst and the Nasdaq 100 Next Gen ETF (QQQJ) is at a moment of truth. Even though techs are holding up, we are seeing weakness in banks, steel, housing and metals. A medium-term breadth indicator also hit its lowest reading since October and this shows an increase in downside participation.

Broad Market Notes

  • SPY Gaps Below Rising 50-day
  • RSI Breaks Bull Range for EW S&P 500 ETF
  • MDY Breaks May Low (relative weakness)
  • IJR Fails to Hold Breakout
  • QQQ Holds Above 50-day (relative strength)
  • QQQJ Hits Channel Resistance
  • Market Regime Remains Bullish, but…
  • Short-term Breadth Deteriorates
  • May-June Live up to Seasonal Patterns
  • Fed Balance Sheet Hits New High
  • Yield Spreads Hit New Lows
  • Gold Reverses Upswing with Violent Decline
  • Oil Holds above Breakout Zone
  • Dollar Surges off Support
  • Bonds Extend Oversold Bounce
  • Bullish Continuation Patterns for 10yr Yield

ETF Highlights

  • Short and Long Term Leaders/Laggards
  • Finance, Materials, Industrials, Staples Lead Lower
  • XLV Holds Up Relatively Well
  • XLU Fails to Hold Breakout
  • Tech ETFs Hold Upswings (IGV, CIBR, FDN)
  • Tech ETFs with Lower Highs? (SOXX, SMH, XSD, IPAY)
  • FIVG Triggers Trailing Stop
  • ITB: Oversold Wedge within Bigger Uptrend
  • KRE Breaks March Low
  • ITA Tests Breakout Zone (support)
  • IBB Sets Up with Six Day Pullback
  • IHI Holds Wedge Breakout
  • IHF Corrects within Bigger Uptrend
  • XES, XOP and FCG Trigger Trailing Stops
  • Commodity-Related ETFs become Very Oversold
  • CARZ and IDRV Test Breakout Zones
  • BETZ Reverses Upswing within Consolidation
Thanks for tuning in and have a great weekend!

-Arthur Hill, CMT
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