Weekend Video – SPY and QQQ Lead as IWM Holds Support, Lots of Wedge/Channel Corrections and a Couple of Breakouts (Premium)

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Today’s video starts with new highs in SPY and QQQ, and the extended trading range in IWM. Large-caps, large-cap techs and healthcare are leading the market, while small-caps, industrials, finance and others are lagging. Even though several groups are lagging because they declined the last one to three months, many formed falling wedge or channel patterns that represent a correction within the bigger uptrend. We will focus on several of these patterns. The Home Construction ETF and Copper ETF broke out already. The segment on the Healthcare Providers ETF highlights a stop-loss technique to consider when price closes below the ATR Trailing Stop.

Trading Corrections: Identifying and trading the falling wedge.

Exit Strategies: Indicators, riding the trend, using the ATR Trailing Stop.  

Broad Market Notes

  • SPY and QQQ Hit New Highs
  • IWM Bounces off Range Lows
  • Composite Breadth Model Remains Bullish
  • Yield Curves Remain Narrow, but Widen a Little
  • Fed Balance Sheet Hits New High
  • Oil Bounces off Breakout Zone
  • TLT and 10-yr Yield Retrace 50%
  • GLD Hits Make or Break Resistance
  • Dollar Hits Resistance as Euro Hits Support

ETF Highlights

  • XLK, XLC and XLV Lead with New Highs
  • XLF, XLI and XLB Correct with Falling Wedges
  • XLE Forms Island Reversal at Support
  • IGV, FDN and CIBR Extend on Triangle Breakouts
  • SMH and SOXX Chop Higher
  • IPAY Bids to Break Out of Big Triangle
  • ITB and XHB Break Out of Falling Wedge Patterns
  • KBE and KRE Correct to Rising 200-day SMAs
  • IBB and IHI Lead with Higher Highs
  • IHF Goes for Channel Breakout
  • Energy ETFs Get Oversold Bounce/Reversal
  • CPER Breaks Out as COPX Forms Wedge
  • SLX, XME, MOO and WOOD Correct with Falling Wedge/Channel
  • PHO Hits New High as IYZ Elongates Triangle
Thanks for tuning in and have a great weekend!

-Arthur Hill, CMT
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