The Technicals Among The 5 Equity ETFs Are Mixed

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

Diamonds, Spiders and QQQs are back above their 200-day simple moving averages.

QQQs, Transports and Russell 2000 ETFs still have negative weekly charts.

The five equity ETFs straddle their annual pivots.

The bulls gained control last week on the expectation that the Federal Reserve will cut rates up to three times in 2019. Keep in mind that it's unlikely that it will cut rates while still tightening as it unwinds its balance sheet. Quantitative tightening is scheduled to end in October, so cutting rates may wait until then.

Keep in mind that the Mexican tariffs may have been averted but the trade war with China remains in place. In addition, government investigations of four FAANG continue.

Here's Today's Scorecard

Equty ETF Scorecard SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA)

Daily Chart Foe Diamonds Courtesy of Refinitiv XENITH

The Diamonds ETF is 20% above its 2018 low of $216.97 set on Dec. 26 and is 3.3% below its all-time intraday high of $269.28 set on Oct. 3. The all-time closing high is $267.67 also set on Oct. 3. The 2019 high remains $266.86 set on April 23. Diamonds is above its 200-day simple moving average at $254.33.

Diamonds is above its five-week modified moving average at $257.98 with its 12x3x3 weekly slow stochastic reading falling to 43.31 last week down from 49.62 on May 31. Semiannual and monthly value levels are $243.47 and $240.24, respectively, with weekly and annual pivots at $255.54 and $257.94, respectively, and quarterly risky level at $279.04.

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

Daily Chart For Spiders Courtesy of Refinitiv XENITH

The Spiders ETF is 23.1% above its Dec. 26 low of $233.76 and is 2.4% below its all-time intraday high of $294.95 set on May 1. The all-time closing high was set at $294.34 on April 30. Spiders is above its 200-day simple moving average at $277.21.

Spiders is above its five-week MMA at $284.64 with its 12x3x3 weekly slow stochastic reading declining to 54.93 last week down from 63.59 on May 31. Semiannual and monthly value levels are $266.14 and $258.62, respectively, with weekly and annual pivots at $284.25 and $285.86, respectively, and quarterly risky level at $297.56.

PowerShares QQQ Trust ETF (NASDAQ:QQQ)

Daily Chart For QQQ Courtesy of Refinitiv XENITH

The QQQs ETF is 26.2% above its 2018 low of $143.46 on Dec. 24. QQQ is 5.4% below its all-time intraday high of $191.32 set on May 1. The all-time closing high is $191.11 on May 3. QQQ is above its 200-day simple moving average at $174.20.

QQQ is just above its five-week MMA at $180.99 with its 12x3x3 weekly slow stochastic reading falling to 54.83 down from 64.86 on May 31. Annual, semiannual and monthly value levels are $169.27, $167.53 and $159.08, respectively, with a weekly pivot at $181.14 and quarterly risky level at $194.29.

iShares Transportation Average ETF (NYSEARCA:IYT)

Daily Chart For IYT Courtesy of Refinitiv XENITH

IYT is 17.5% above its 2018 low of $155.24 set on Dec. 24. The ETF is in correction territory 12.6% below its all-time intraday high of $209.43 set on Sept. 14. The closing high of $208.48 was set the same day. The 2019 high of $200.42 was set on April 24. Transports is below its 200-day simple moving average at $188.03.

IYT is below its five-week MMA at $186.09 with its 12x3x3 weekly slow stochastic reading declining to 37.78 last week down from 48.79 on May 31. Monthly and semiannual value levels are $161.36 and $159.63, respectively, with annual and quarterly risky levels at $196.35 and $204.78, respectively.

iShares Russell 2000 ETF (NYSEARCA:IWM)

Daily Chart For IWM Courtesy of Refinitiv XENITH

IWM is 19.9% above its 2018 low of $125.81 set on Dec. 26 and is in correction territory 13% below its all-time intraday high of $173.39 set on Aug. 31. The all-time closing high at $173.02 was set the same day. The 2019 high is $161.11 set on May 6. The Russell 2000 is below its 200-day simple moving average at $153.83.

IWM is below its five-week MMA at $152.48 with its 12x3x3 weekly slow stochastic reading falling to 39.51 down from 49.73 on May 31. Its monthly value level is $130.45 with Its 200-week simple moving average is $137.69 with its semiannual pivot at $149.77 and annual and quarterly risky levels at $157.49 and $166.03, respectively.

How to use my value levels and risky levels

Value levels and risky levels are based upon the last nine weekly, monthly, quarterly, semiannual and annual closes. The first set of levels was based upon the closes on Dec. 31. The original semiannual and annual levels remain in play. The weekly level changes each week; the monthly level was changed at the end of January, February, March, April and May. The quarterly level was changed at the end of March. My theory is that nine years of volatility between closes are enough to assume that all possible bullish or bearish events for the stock are factored in. To capture share price volatility investors should buy on weakness to a value level and reduce holdings on strength to a risky level. A pivot is a value level or risky level that was violated within its time horizon. Pivots act as magnets that have a high probability of being tested again before its time horizon expires.

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.