Diamonds, Spiders, Nasdaq 100, Transports ETF Remain Overbought; The Russell 2000 ETF Is Now Negative

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Includes: DIA, IWM, IYT, QQQ, SPY
by: Richard Suttmeier

Summary

The Diamonds and Spiders ETFs still show "inflating parabolic bubble" formations on their weekly charts.

The weekly charts for the NASDAQ 100 QQQs ETF and Transports remain positive but overbought.

The weekly chart for the Russell 2000 ETF has been downgraded to negative given its weekly close below $169.66 at September end.

Today I will show the weekly charts for the five major equity averages.

Note that I show new weekly, monthly and quarterly value levels, risky levels and pivots. Buy weakness to a value level. Reduce holdings on strength to a risky level. A pivot is a magnet for the time frame mentioned.

Here's Today's Scorecard

Scorecard For The Major Equity Averages

SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA)

The Diamonds ETF has a positive but overbought weekly chart with the ETF above its five-week modified moving average of $259.93. The 200-week simple moving average or "reversion to the mean" is $202.24. Its 12x3x3 weekly slow stochastic reading ended last week at 92.70, well above the overbought threshold of 80.00 and above 90.00, making the ETF an "inflating parabolic bubble".

Weekly Chart For Diamonds

Courtesy of MetaStock Xenith

My annual, semiannual and monthly value levels are $246.52, $243.29 and $241.42, respectively, with a weekly pivot of $266.69 and my quarterly risky level of $284.13. DIA set its all-time intraday high of $267.61 on Sept. 21. To reach bull market territory, DIA needs to trade above $279.84.

SPDR S&P 500 ETF Trust (NYSEARCA:SPY)

The Spiders ETF has a positive but overbought weekly chart with the ETF above its five-week modified moving average of $287.65. The 200-week simple moving average or "reversion to the mean" is $130.70. The 12x3x3 weekly slow stochastic reading ended last week at 90.74, slipping from 91.12 on Sept. 21, with both readings above 90.00, which is a warning that SPY remains as an "inflating parabolic bubble".

Weekly Chart For Spiders

Courtesy of MetaStock Xenith

My annual, monthly and semiannual value levels are $276.34, $272.46 and $270.84, respectively, with a weekly pivot of $293.72 and my quarterly risky level of $302.55. The all-time intraday high of $293.94 was set on Sept. 21. To reach bull market territory, SPY needs to trade above $303.50.

PowerShares QQQ Trust ETF (NASDAQ:QQQ)

The NASDAQ 100 QQQ ETF has a positive but overbought weekly chart with the ETF above its five-week modified moving average of $182.47. The 200-week simple moving average or "reversion to the mean" is at $129.66. The 12x3x3 weekly slow stochastic reading ended last week at 81.44, up from 81.10 on Sept. 21 with both readings above the overbought threshold of 80.00.

Weekly Chart For QQQ

Courtesy of MetaStock Xenith

My monthly, semiannual and annual value levels are $178.31, $169.40 and $156.14, respectively, with my weekly pivot at $183.98, and my quarterly risky level at $190.87. The all-time intraday high of $187.53 was set on Aug. 30 and is being challenged this morning. QQQ remains in bull market territory 23.8% above its Feb. 9 low of $150.13.

iShares Transportation Average ETF (NYSEARCA:IYT)

The Transports ETF has a positive but overbought weekly chart with the ETF above its five-week modified moving average of $203.40. The 200-week simple moving average or "reversion to the mean" is $162.43. The 12x3x3 weekly slow stochastic reading rose to 89.22 last week, up from 89.15 on Sept. 21 with both readings well above the overbought threshold of 80.00. Strength this week will push the stochastic reading for IYT above 90.00, making it an "inflating parabolic bubble".

Weekly Chart For The Transports ETF

Courtesy of MetaStock Xenith

My monthly and semiannual value levels are $192.24 and $181.19, respectively, with my annual pivot of $204.61 and weekly and quarterly risky levels of $208.86 and $221.72, respectively. To reach bull market territory, IYT needs to trade above $211.94.

iShares Russell 2000 ETF (NYSEARCA:IWM)

The small-caps ETF has a negative weekly chart with the ETF below its five-week modified moving average of $169.45. The 200-week simple moving average or "reversion to the mean" is $132.72. The 12x3x3 weekly slow stochastic reading declined to 77.28 last week, down from 82.16 on Sept. 21 and falling below the overbought threshold of 80.00.

Weekly Chart For The Russell 2000 ETF

Courtesy of MetaStock Xenith

My annual and semiannual value levels are $166.87 and $154.04, respectively, with my monthly pivot at $167.65 and my quarterly risky level at $179.48. IWM did not close last week above $171.00, so the ETF slipped out of bull market territory at 19.6%, above its Feb. 9 low of $142.50.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.