There was no change to the Franklin International Rotation Model this week, so we look at the the Franklin Intelligent Machines ETF (IQM).

There was no change to the Franklin International Rotation Model this week.

Growth areas of the market continue to push domestic equities higher this year, and the group displays long-term relative strength over more value-oriented areas. Within growth focused areas, the technology sector has seen one of the sharpest rises in strength, with the sector rising back to the top three of DALI’s sector ranks. Those looking to add exposure to more technology and other growth focused areas could look towards the Franklin Intelligent Machines ETF (IQM). The ETF has a near perfect fund score of 5.79, in addition to a sharply positive score direction of 4.45 points. IQM returned to a positive trend in May and is on a streak of three consecutive buy signals. The fund also holds both long-term and near-term relative strength versus the market (SPXEWI). IQM has outpaced the S&P 500 (SPX) each of the last two years, rising 31.0% and 41.1% in 2023 and 2024, respectively. IQM is off to another strong start for the year, as it is up 20.2% year to date, which is almost 10% more than the S&P 500. Long exposure could be added here given its actionable positioning with an overbought/oversold (OBOS) reading below 60%. Initial support lies at $78 to $77 with additional support at $68. Meanwhile, previous resistance in the low $70s could also serve as future bounce points.