Momentum Watch: Selling Pressure Continues, Utilities Hardest Hit (ETFs: UTH, XLU, IDU)

Includes: IDU, UTH, XLU
by: Nick Perry

Nick Perry (Schaeffer's Investment Research) submits: The week before last we saw what I described as "rampant selling pressure," and this past week we found a similar picture. Take a look at this chart of the top and bottom performing ETFs for the week:

ETF winners

A few areas of the market, like healthcare and banks were able to squeak out small gains for the week, but most ETFs saw selling pressure continue. Hardest hit were utilities and the various energy-related groups which were some of the worst performers last week. The bullets below show the year-to-date returns for the ETFs listed above.

Year-to-Date Returns for This Week's Top Performing Sector Exchange Traded Funds:

Biotech HOLDRS (NYSEARCA:BBH) +21.8%
Pharmaceutical HOLDRS (NYSEARCA:PPH) -4.5%
Regional Bank HOLDRS (NYSEARCA:RKH) -8.5%
Health Care Sector SPDR (NYSEARCA:XLV) +2.3%
iShares Healthcare (NYSEARCA:IYH) +3.3%
Software HOLDRS (NYSE:SWH) -13.4%
Financial Sector SPDR (NYSEARCA:XLF) -4.9%
Consumer Staples SPDR (NYSEARCA:XLP) -1.4%

Year-to-Date Returns for This Week's Bottom Performing Sector Exchange Traded Funds:

Semiconductor HOLDRS (NYSEARCA:SMH) +3.1%
iShares Networking (NYSEARCA:IGN) -3.1%
iShares Natural Resource (NYSEARCA:IGE) +24.6%
iShares Semiconductor (IGW) +3.1%
iShares Energy (NYSEARCA:IYE) +26.3%
Oil Service HOLDRS (NYSEARCA:OIH) +28.7%
Energy Sector SPDR (NYSEARCA:XLE) +30.9%
Utilities Sector SPDR (NYSEARCA:XLU) +10.4%
iShares Utilities (NYSEARCA:IDU) +9.3%
Utilities HOLDRS (NYSEARCA:UTH) +13.6%

Last week I posted the charts of the Oil Service HOLDRS (OIH), the Energy Sector SPDR (XLE), and iShares Natural Resource Fund (IGE) to highlight their long-term uptrend. And while this week saw more selling, those ETFs are still sitting above the long-term support levels I noted, so my thoughts haven't changed. Of course, my caveat about me missing the turn is still worth noting.


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