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Mid-caps, small-caps and high-beta stocks are weighing on the broader market, but SPY, QQQ and some large-caps are holding up. We are also seeing a shift away from risk in the bond market as the Junk Bond ETF (JNK) hit a 52-week low and the 20+ Yr Treasury Bond ETF broke out. Weakness in stocks was enough to trigger bearish breadth thrusts and the Composite Breadth Model turned bearish. Yield spreads also widened as stress levels increased in the bond market. There are still some strong pockets in the stock market (semis and housing) and the pullbacks in SPY and QQQ are still fairly normal. Oil and the energy ETFs are at interesting junctures within their long-term uptrends. Some tech-related ETFs are quite oversold and some even broke their October lows. Today’s video covers all this and more…
Broad Market Notes
- Composite Breadth Model Turns Bearish
- Widening Yield Spreads Show Stress
- Fed Balance Sheet Contracts by Modest Amount
- SPY and QQQ Pull Back after New Highs
- Sep-Oct Lows in Play (RSP, MDY, IJR, QQQJ)
- High Beta FFTY Breaks October Low
- IWM Turns Bearish as IWC Hits New Low for 2021
- TLT and IEF Break Out as 10yr Breaks Down
- JNK Bonds Trading Like High Beta
- GLD Stalls at Retracement within Range
- Dollar Remains in Strong Uptrend
ETF Trends, Patterns and Setups:
- ETF Ranking and Trend Signal Table Overview
- New High or Near New High: SOXX, SMH, ITB, XHB, KRBN, REMX
- New High, Pull Back, Not Oversold: QQQ, XLK, XLY, IDRV, DBA
- New High, Pull Back, Oversold: SPY, XLB, CARZ, PHO, LIT, DRIV
- Consolidating Near Prior High: XLRE, IYR, REZ (plus XLU)
- New High, Bull Flag: XLE, XOP (plus XES and $WTI Hit Support)
- Uptrend, Sharp Pullback, Oversold: CIBR, IGN, ROBO, BOTZ, URA
- Return to Breakout Zone, Gap Down: KRE, KBE (plus $TNX)
- Failed Breakout, Bull Flag: COPX, CPER (plus DBB)
- Failed Breakout, Above October Low: XLI, IFRA, XLF, XRT, KIE
- Uptrend, Lower High, Pullback XLV, IHI (Plus IBB and XBI)
- Broke October Low: IGV, HACK, CLOU, SKYY, FINX, FDN
- Failed Breakout, Below October Low: PBJ, XME, MOO
- High Beta Groups: QCLN, ICLN, TAN, ESPO, GAMR
- Downtrend: IWC, XLC, IPAY, IBUY, ITA, JETS, FAN, XBI, SLX, GDX, SLX, SLV
- Downtrend: CUT, WOOD, IYZ, PAWZ, UFO, BETZ, MJ, YOLO, IPO