Market Insight

Index & Sector ETF Signals - 1/12/2018 Update

Note: Next update following the market close of 1/5/2018.

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 pullback

 DBA Bearish  Med Possibly forming a higher low; watch for major trend change
 GLD Bullish Med Trending up; attractive contrarian position and hedge; resistance at 130
 VGK Bullish   Hi Overbought; more attractive value vs. US stocks
 UUP Bearish High Nearing major support; oversold; rising rates positive
 TLT Bullish   Low Clean bounce from support near 123; likely trading range
EEM Bullish   Med Overbought

Select Sector SPDR ETF's

 Symbol  Trend

Trend Change Risk

Notes
XLK Bullish Hi New high; overbought
XLU Bearish Low Rotation out of rate-sensitive stocks
XLI  Bullish Hi Increased risk of pullback; support near 72.50
XLB Bullish Hi Overbought
XLV  Bullish Hi Overbought; support near 84
XLE Bullish Med Closing in on resistance newar 75
XLP  Bullish Med Trading range
XLY Bullish Hi Overbought; support near 101
XLF  Bullish Med Overbought; but macro trends favor sector

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 1/12/2018
TrendFlex Score & TrendFlex Signals for 1/5/2018

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