ETF Focus: Major U.S.

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Preface to all four parts: This weekend, I’ve taken some favorite exchange-traded funds (ETFs) and broken them into groups. I’ll share a few thoughts about each of these below, and as always, clicking on any chart will make it fill your screen, whatever size that may be.

We begin with the Dow Industrials, which has been following a descending channel and has been hammering out a fairly steady series of lower lows and lower highs. We’re at about the midline currently.

The small caps obey their Fibonacci retracements fairly well since the data isn’t adjusted for dividends (which makes it align better with the futures, for our purposes). We are at an important Fibonacci resistance level presently.

The Dow Transports has a monstrous shelf of overhead supply, and I am highly confident it will not pierce back into that region.

The S&P 100 ETF is sporting a very clean topping pattern with a well-defined neckline.

The tech-heavy NASDAQ has an even better topping pattern. It’s truly one of the best I’ve ever seen in a big fund.

And, the granddaddy of them all, the S&P 500, earns a grade of “A-” (versus the straight “A” I’d give to the NASEAQ) with respect to its own top.

Finally, the Industrials fund below is actually substantially easier to trade (both equity and options) than its doppelganger the DIA.