The trends remain the same for equities, but the Russell 2000 (IWM) continues to challenge its long-term resistance in an attempt to initiate a new uptrend.
Dropping below the radar of the broad equity indices, one can observe some signs of relative strenth emerging in several areas which could eventually provide investors with alternatives to overweighting the technology sector.
Meanwhile in commodities, the Agricultural ETF (DBA) continues to lag the overall market and was downgraded to a short-term downtrend.
Regarding currencies, the short-term trend for the Euro (FXE) remains up but its momentum has decelerated significantly. Other forex correlated ETFs are also trading a bit choppy. Note that the U.S. Dollar Index and U.S. Dollar ETF (UUP) are extremely oversold and I would not be surprised to see the market pitch us a curveball with the dollar bouncing off its June-2009 lows. At the same time I acknowledge that the existing fundamentals do not support a stronger dollar but think it might be prudent to prepare for the unexpected.
Of course, it takes more than one day to confirm if a trend reversal is sustainable, but investors may want to pay closer attention to the above mentioned ETFs and their respective underlying components (if applicable).
ETF Trend Monitor
| Equity ETFs | Short-term | Intermediate | Primary |
| DIA (DJ Industrials) | up | up | down |
| SPY (S&P 500) | up | up | down |
| QQQQ (Nasdaq 100) | up | up | up |
| IWM (Russell 2000) | up | up | down |
| Sector ETFs | Short-term | Intermediate | Primary |
| XLY (Consumer Discrtn) | up | up | up |
| XLP (Consumer Staples) | up | up | up |
| XLE (Energy) | up | up | down |
| XLF (Financials) | up | up | down |
| XLV (Health Care) | up | up | lateral |
| XLI (Industrials) | up | up | down |
| XLB (Materials) | up | up | lateral |
| XLK (Technology) | up | up | up |
| IYZ (Telecom) | up | up | down |
| XLU (Utilities) | up | up | down |
| Commodities | Short-term | Intermediate | Primary |
| GLD (Gold) | up | up | up |
| SLV (Silver) | up | down | lateral |
| DBB (Base Metals) | up | up | up |
| JJC (Copper) | up | up | up |
| USO (Oil) | up | up | down |
| UNG (Natural Gas) | up | down | down |
| UGA (Gasoline) | up | up | lateral |
| DBC (Commodities) | up | up | lateral |
| DBA (Agriculture) | down | down | down |
| Forex | Short-term | Intermediate | Primary |
| UUP (U.S. Dollar) | down | down | down |
| FXE (Euro) | up | up | up |
| FXY (Japanese Yen) | lateral | up | up |
| FXB (British Pound) | lateral | up | up |
| FXC (Canadian Dollar) | up | up | up |
| FXA (Australian Dollar) | up | up | up |
| FXM (Mexican Peso) | up | up | lateral |
| BZF (Brazilian Real) | up | lateral | n/a |
| CYB (Chinese Yuan) | lateral | lateral | lateral |
| ICN (Indian Rupee) | lateral | lateral | n/a |
| XRU (Russian Ruble) | up | lateral | n/a |
| Bonds | Short-term | Intermediate | Primary |
| SHY (1-3 Yr Tsy) | lateral | lateral | lateral |
| IEF (7-10 Yr Tsy) | up | down | down |
| TLT (20 Yr+ Tsy) | lateral | down | down |
| TIP (Tsy Inflation Protect) | up | lateral | lateral |
| AGG (Investment Grade) | up | up | up |
| JNK (Hi Yld Bonds) | up | up | up |
| HYG (Hi Yld Corp) | up | up | up |
| MUB (Nat’l Muni Bond) | lateral | lateral | lateral |
| Real Estate | Short-term | Intermediate | Primary |
| IYR (DJ US Real Estate) | up | up | down |
| XHB (Homebuilders) | up | up | lateral |
| ITB (Home Construction) | up | up | lateral |
| FIO (Industrial Office) | up | up | down |
| REM (Mortgage Reits) | up | up | lateral |
| REZ (Residential Index) | up | up | lateral |
| RTL (Retail Index) | up | up | down |
Market Momentum Monitor
| Market Momentum | 20-Day MA | 50-Day MA | 200-Day MA |
| Today | 82.90% | 77.79% | 82.27% |
| Yesterday | 84.42% | 78.53% | 82.42% |
| Last Week | 54.99% | 54.53% | 74.26% |
| Last Month | 26.55% | 55.87% | 65.67% |
Disclosures: Hillbent.com, Inc. or its affiliates may own positions in the equities mentioned in our reports. We do not receive any compensation from any of the companies covered in our reports.
