Weekly ETF Rewind: Oversold Bounce or Broken Bull Ahead?

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 |  Includes: DBA, DBC, DBE, DBP, DIA, EEM, EFA, IWM, IYR, IYT, PWB, PWV, PXMG, PXMV, PXSG, PXSV, QQQ, SPY, TLT, UUP, XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY
by: ETF Prophet

By Jeff Pietsch

In a retrace reminiscent of the early shots across the bow of 2007, a perfect storm of overbought conditions, peckish earnings responses, and political heat on the Fed and banks left the majority of tracked ETFs down for a second consecutive week. The move left the "priced for perfection" S&P 500 (NYSEARCA:SPY) lower by a whopping -5.0%, and equities generally as heavily oversold as they were overbought just a short while ago. However, inasmuch as we are statistically due a significant bounce next week, whether and how that evolves will tell us a great deal about just how broken this Bull Market truly is.


Click Image to Enlarge/ ETF Rewind Glossary:



Week four of 2010 includes the following busy reporting calendars, featuring an FOMC meeting, and rotation model selections (performance tracking added this weekend):

Click to enlarge:

Have a terrific weekend!

Disclaimer: Never Investment Advice