Let’s take a peek at seven important exchange traded funds.
The Dow 30 “diamonds” rallied for a solid week, pushing toward lifetime highs again but, importantly, never piercing its broken trendline. This is a textbook dead cat bounce.
Emerging markets have stalled below the dashed red line.
Gold has conquered its gap and has three challenges ahead, each represented by a successively higher red horizontal.
The small caps had an extremely robust bounce, pretty much undoing last Thursday’s damage the very next day, hammering out five green bars in a row. As with the DIA, we are below the broken trendline and should (hopefully) weaken from here.
The semiconductor sector, until a month ago the thruster engines behind this entire multi-year rally, has totally stalled out and might be in the throes of a head and shoulders top..
I’ve zoomed in on the S&P 500 ETF to show that, for the moment at least, the only thing the five big “up” days have accomplished is to create another lower high.
Lastly, the homebuilders sector is under a ton of overhead supply and could resume its downtrend almost immediately.
