I will post a Market Regime update later today (19-Feb) that covers breadth, yield spreads and interest rates.
The next report will be on Thursday, February 20th.
We are in a bull market with the technology sector reasserting its leadership role. QQQ was the first of the major index ETFs to hit a new high (Friday). SPY joined with a new high and resistance break on Tuesday. The Technology SPDR (XLK) fully recovered from its late January swoon and hit a new closing high on Tuesday. Hmmm… new highs in SPY, QQQ and XLK are bullish for the market.
We are even seeing the average S&P 500 stock perk up as the S&P 500 EW ETF (RSP) broke out of its pennant. Mid-caps (MDY) and small-caps (IJR, IWM) are still within wedge patterns and have yet to break out. Large-caps are leading, while mid-caps and small-caps are lagging.
There were a number of wedge breakouts in mid January and we are seeing prices extend on these breakouts (XLF, XLC, SKYY, CLOU, IGV). Within the tech sector, we are seeing upside leadership in cybersecurity (CIBR) and IA related ETFs (AIQ, ARTY). I updated the Semiconductor ETF (SMH, SOXX) charts today by showing large consolidation patterns. SMH is slightly stronger than SOXX.
Some ETFs are still trading around their breakouts zones, and these breakouts are still valid and bullish (XLI, XLU, PAVE, IFRA, KRE, KBE, KIE). Elsewhere, the two defense ETFs (ITA, XAR) pulled back after hitting new highs. Gold continues to lead as GLD hit another new high on Tuesday. The Bitcoin ETF (IBIT) remains very quiet as it forms a bullish triangle.
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Video Headlines
- SPY Breaks Rim Resistance of Bullish Cup-with-handle
- QQQ Extends on Breakout and Hits New High
- S&P 500 EW ETF Breaks Out of Bullish Pennant
- MDY, IJR and IWM Remain within Smaller Wedges (no breakouts)
- Industrials SPDR Breaks Out after Short Pullback
- Utilities SPDR Holds Wedge Breakout and Establishes Support
- Mag7 ETF Consolidates within Long-term Uptrend
- Semiconductor ETFs Form Massive Triangle Consolidations
- Cloud ETF Forms Bullish Pennant Near 52-wk high
- BlockChain: DAPP Extends Correction as BLOK Holds Breakout
- Aerospace & Defense ETFs Pull Back after New Highs
- Infrastructure ETFs Break Out of Small Wedges
- Gold SPDR Hits New High to Extend Lead
- Bitcoin ETF Forms Bullish Triangle within Uptrend