Major Market ETF Update

Portfolio View - Major Market ETFs

Additional Comments:

The SPDR Dow Jones Industrial Average ETF Trust DIA remains in a column of X’s this week, sitting at $345. However, the fund remains below an acceptable score, scoring at 2.69. It also still scores below the average US score of 3.52. DIA remains in a positive trend at current levels. Support is offered at $315 with overhead resistance at $345-$350.

The iShares MSCI Emerging Markets ETF EEM remains on a buy signal this week but does remains in a column of O’s at this point at a chart reading of $39.50. EEM now scores below the acceptable 3.0 threshold with a score posting of 2.97. The fund sees initial support at $38, with more substantial support down around $37.

The iShares MSCI EAFE ETF EFA remains in a column of O’s this week after recently pulling back toward the middle of the trading band. Developed markets have been an area of strength throughout 2023, showcased by EFA’s strong 4.08 fund score. The ETF remains in a positive trend at current levels with established support offered at $67.

The iShares MSCI Frontier and Select EM ETF FM remains in a column of O’s this week. The fund has a weak score of 2.55 yet is now paired with a positive 1.10 score direction. FM is seen at a price of $24.50. Support is seen below at $23.50, lows for 2022. Further downside participation would see the fund test its bullish support line.

The iShares S&P MidCap 400 Index Fund IJH maintains its column of X’s this week after bouncing off its bullish support line in March. The fund also remains in a positive trend, recently advancing to a price of $260. IJH has a current fund score of 4.33 which is now above the average US score of 3.52. From here, overhead resistance is found at $270 with the bullish support line found below.

The iShares S&P SmallCap 600 Index Fund IJR reversed back into a column of X’s this week, sitting at a price of $100. Despite the recent action, IJR maintains an improved but unacceptable 2.43 fund score. Support is offered below at $92, with overhead resistance found at $100, the highs for the year.

The Invesco QQQ Trust QQQ remains in a column of X’s this week and is seen at a price of $370. Recent positive participation sees the fund hold a strong 4.90 fund score and is paired with an intensely positive 3.25 score direction. This now outpaces the average US fund, which shows a 3.52 average score. Initial support is offered at $290, well below current levels. QQQ sits in heavily overbought territory so a near-term pullback into O’s could be expected.

The Invesco S&P 500 Equal Weight ETF RSP moved back into a positive trend this week and is now seen at a price of $150. RSP holds a negative 1.68 score direction and now displays a 3.81 fund score. This is still behind the average S&P 500 Index fund score of 4.66. The spread between the two has been widening over the last few weeks. Support is now seen at $140.  

The SPDR S&P 500 ETF Trust SPY remains in a column of Xs this week and trades at a price of $450. The fund now posts a strong 4.44 fund score, besting the average US fund score of 3.52. Recent action saw the fund return to a column of X’s against SPXEWI suggesting near-term strength for the cap-weighted names. Support is seen at $385 on the default chart, March lows.

The Invesco S&P 500 Top 50 ETF XLG remains in a column of X’s this week, seen at a price of $350. It remains on a string of now three consecutive buys signals. Furthermore, XLG now has a near-perfect 5.79 fund score with a now positive score direction of 4.10. XLG scores above the average US Fund (3.49) and has shown resilience in line with other larger names over the past week. Support is seen at $285 on the default chart, notably below current levels.