There are no changes to be made within either of the Dorsey Wright Guggenheim Models this week, as each of the current holdings continue to maintain positive relative strength within their respective universes.

We have continued to see strength come from International Equities, which currently ranks #2 in DALI and is the most improved asset class year-to-date, up 65 buy signals. Among those countries that are driving this improvement is China, and we can see this on the chart of the Guggenheim China All-Cap ETF YAO. With yesterday’s market action, YAO rallied to $28.50, breaking through the bearish resistance line, flipping the overall trend back to positive for the first time since July 2015. This level also marks a new 52-week high for the fund. YAO has a strong fund score of 4.71 with an impressive score direction of 4.00, speaking to its recent improvement over the past six months. YAO is outscoring the average Non-US Equity fund (3.82), the average All China fund (4.07), as well as the average All Global & International fund (3.69). Weekly momentum just flipped positive, suggesting the potential for further upside from here. Additionally, YAO has a price target of $39, offering a reward to risk ratio north of 2 (assuming a stop of $23.50). Overall, the weight of the evidence is positive here. Okay to initiate new positions here if looking to garner or increase exposure to China. The first sign of trouble from here comes with a move to $23.50, a double bottom sell signal.

The performance numbers above a price return is not inclusive of dividends or all transaction costs. Past performance is not indicative of future results.  Potential for profits is accompanied by possibility of loss.

The distribution curve places each ETF on a bell curve according to their respective degrees of overbought or oversold status using a 10-week distribution. ETFs that are statistically oversold will appear on the left-hand side of the bell curve, while those that have become statistically overbought will appear on the right-hand side of the bell curve. Perhaps the most useful attribute of this feature is that it displays the entire universe on the curve at one time to give us a general picture of whether the Guggenheim ETF universe is generally overbought on a near-term basis, or generally oversold. Our best opportunities are to buy strong relative strength ETFs that have regressed back toward mean conditions based on market weakness, or have become oversold based upon extreme market weakness. Weekly Distribution is a short-term gauge that is most helpful in timing entry and exit points, while the longer-term information of trend and relative strength is a more controlling factor in the decision of whether to buy or sell.

Average Level: 33.32

The average Bullish Percent reading this week is 57.58% down 0.71% from the previous week

						RYU	RTM
					sea	RCD	RSP	wmcr
					hao	cvy	RZG	XLG		cqqq
					RPV	RGI	CSD	RFG		RPG
				WREI	eny	RYJ	gsy	lvl	RYH	frn
				rye	RFV	RHS	DEF	tan	eeb	RYT
				rzv	RYF	tao	CZA	cut	NFO	ewem	hgi
	-100--80	-80--60	-60--40	-40--20	-20-0	0-20	20-40	40-60	60-80	80-100	100->

Legend:

• UPPERCASE indicates that the RS chart is on a buy signal.
• lowercase indicates that the RS chart is in a sell signal.
• GREEN lettering indicates the ETFs trend chart is on a buy signal.
• RED lettering indicates the ETF is on a sell signal.

This section of the report categorizes all of the Guggenheim ETFs by their respective broad group. Along with each group, you can view the Average Group Score, which is an average of the scores of all funds represented in that particular group. Those Guggenheim ETFs that meet or exceed the Average Group Score will be highlighted in green in order to easily view those Guggenheim ETFs that have superior strength within their respective group. You want to focus on those ETFs that exhibit superior strength when looking to add new exposure to a particular group.

The DWA Matrix uses a Point & Figure relative strength comparison of each index to one another to identify the strongest and the weakest among the universe used. The ETFs with the most relative strength buy signals (suggesting outperformance) versus the others in the group are listed at the top. These ETFs should be overweighted in the portfolio. Those ETFs with the least amount of relative strength buy signals versus the others in the group are listed at the bottom. These ETFs should be underweighted in the portfolio. The DWA Matrix uses a Point & Figure relative strength comparison of each index to one another to identify the strongest and the weakest among the universe used. The ETFs with the most relative strength buy signals (suggesting outperformance) versus the others in the group are listed at the top. These ETFs should be overweighted in the portfolio. Those ETFs with the least amount of relative strength buy signals versus the others in the group are listed at the bottom. These ETFs should be underweighted in the portfolio.

Weekly Update:

* - Dates prior to 10/14/08, which is when the Guggenheim Special Opportunities Model ETF Portfolio became available in the Guggenheim Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 7/8/2014, which is when the Guggenheim Equal Weight Sector Model became available in the Guggenheim Weekly ETF Report, are representative of when the position was added to the backtested model.