Let’s take a look at seven interesting Exchange Traded Funds this Sunday. We begin with DBC, the commodity fund, which is looking fairly bullish. Not only have prices busted above the descending channel, but there’s a well-formed base I’ve tinted in green which suggests higher prices again. Thus, more inflation. Thus, the FOMC is utterly hosed.
The Dow Transports are definitely starting to fracture and splinter. As of the end of July, it looked like the bulls were going to completely curb-stomp any surviving bears. As of now, it’s just one failed bullish breakout after another, with this one being a particularly poignant example.
The corporate bond fund has been range-bound for eons. If we can take out that lower supporting horizontal line, it’s game over, man.
The tech stocks are quite interesting right now. On the upside, we have that dashed line representing the price gap hemming in prices, and to the downside, we’ve got that Fibonacci which provided strong support on Thursday. Break it, and we’ve got the opportunity to work toward that lower level, shown with the magenta line, which is actually TWO Fibonaccis that converge at almost precisely the same spot.
I wrote on Friday morning that the semiconductor index was looking potentially like a great bear trade. So far, so good. I think this is one of the best set-ups going as I contemplate the week in front of us.
The S&P 500 ETF has pretty much an identical setup to that of the QQQ. That is to say, we’ve got a dashed line acting as resistance, based on that price gap, but we need to pierce the horizontal Fibonacci to give us the opportunity to hammer down to that supporting, ascending trendline, shown in green below.
Lastly, here is an updated chart of the percentage of stocks above their respective 200-day moving averages. Pretty cool how clean the topping pattern is, isn’t it? I find it fascinating that even a derived indicator such as this has the courtesy to form a shape. This time, hopefully we’ll actually break below the pattern. We were JUST about to do so gloriously last March, but of course that swine Yellen completely screwed things up with her absolutely criminal BTFP plan.
