Market Insight

Index & Sector ETF Signals - 12/1/2017 Update

Note: Next update following the market close of 12/15/2017.

TrendFlex signals for select index and sector SPDR ETF's below are based on a trend-following system filtered to identify the "risk" to a change in the trend. ETF's represent US and foreign equities, commodities, bonds and the US Dollar.

Major Index ETF's 

Symbol 

     Trend

Trend Change Risk 

Observations and Rationale
 SPY

 Bullish 

Hi

Increased risk of continued pullback

 DBA Bearish  Low Attempted bottoming action appears unconvincing
 GLD Bullish Low Trending up; attractive contrarian position and hedge
 VGK Bullish   Hi Attractive US alternative' holding to 50-day 
 UUP Bearish High Correcting from recent rally; 50 day moving avg. resistance. Breakout above 24.80 sets bullish trend
 TLT Bullish   Med Attractive entry point; resistance near 128
EEM Bullish   Med Basing pattern; attractive entry near 45

Select Sector SPDR ETF's

 Symbol  Trend

Trend Change Risk

Notes
XLK Bullish Hi Volatile; attractive entry near 61.
XLU Bullish Low Potential topping; resistance near 57.
XLI  Bullish Hi Increased risk of pullback; support near 71
XLB Bullish Low Possible double top; resistance naer 60
XLV  Bullish Med Correcting; Attractive entry near 80
XLE Bullish Low Firming uptrend, support at 67
XLP  Bullish Hi Resistance near 67; topping pattern
XLY Bullish Hi Overbought
XLF  Bullish Med Strong breakout; macro trend favor financials; nearing poverbought

ETF Technical Leaders

The following table represents ETF's that are in bullish trends and represent technically attractive reward-to-risk entry points (for example, we will shy away from adding an overbought ETF). Although these ETF selections have been pre-screened, investors are advised to pursue their own research to determine whether they are appropriate for their portfolios. Selections are time-sensitive and represent short-term swing trading opportunities that may or may not follow-through on a longer-term basis. In addition, selections may be voided once a market trend change has occurred based on the TrendFlex signals. Visit our FAQ's  for more suggestions regarding ETF Zone. Check back frequently as additional ETF's may be added to the week's list. 

Symbol Rationale Close Date Added
XBI SPDR Biotech ETF bounces at support after modest correction 82.28 12/7/17
PFF Long basing pattern; closed above 50-day moving avg; 5.97% yield 38.13 11/18/17
RSX Basing at 50-day moving average; attractive entry 20.49 8/24/17
EWI iShares Italy ETF inexpensive and possible long-term bottom formed 22.13 12/02/16
XLY Retracement from recent gains; attractive entry point 81.44 12/02/16 
XLV  Post-election catch-up;  nearing positive moving avg. cross (50 over 200 day)  70.49 11/11/16 
TrendFlex Score & TrendFlex Signals for 12/1/2017
Unwinding of Tech (and Re-winding of Financials)

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