Nasdaq Dorsey Wright

With no changes to any of the Invesco models this week, we take a look at the Invesco DWA Industrials Momentum ETF (PRN).

There are no changes to any of the Invesco models this week. While Industrials remains in the bottom half of the DALI domestic equity sector rankings, it is the most improved sector over the last 30 days (7/27 - 8/27), as discussed last Friday’s Daily Equity Report. In last week’s trading, the Invesco DWA Industrials Momentum ETF PRN reached a new all-time high at $78 on its default chart. PRN boast a strong 5.30 fund score, 1.03 points better than the average for all industrials funds and has a positive 2.35 fund score direction. Since bottoming in March along with the broader equity market PRN has given five consecutive buy signals on its default chart. Year-to-date (through 8/27) the fund has notched a price return of 14.49%, which is almost 6% better than the S&P 500’s SPX return of 8.58% and recent flip to positive monthly momentum is a positive sign for the fund’s prospects for additional upside.

PRN’s weekly overbought/oversold reading of 104% puts the fund in heavily overbought territory, so those looking to add exposure may be best served to wait for a pullback or for prices to normalize at their current level. PRN has most recently found support at $65, with additional support afforded at $60.

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DISCLOSURE

**Unless otherwise stated, the performance numbers herein are based on price returns and do not include dividends or all transaction costs. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. PowerShares has arranged with Dorsey, Wright to provide this specialized ETF Point & Figure Analysis page on PowerShares sponsored products. The Point & Figure analysis, models and resulting rankings, including any information, data or commentary included herein, are created and provided solely by Dorsey, Wright & Associates. Such analysis, models and rankings should not be considered an offer to purchase or sell, or a solicitation of an offer to buy or purchase any security. The examples presented do not take into consideration commissions, tax implications, or other transactions costs. Neither Dorsey, Wright nor PowerShares through this ETF page provide investment advice or recommendations regarding any security, fund or market. As the investment professional making the final decision with respect to allocations, including any related suitability, fiduciary or other legal obligation, please remember to adhere to all applicable laws, regulations, and rules including NASD Rules 2090 and 2111. The percentage of the portfolio devoted to any ETF is at the sole discretion of the financial advisor or the customer, and not Dorsey, Wright & Associates or PowerShares. If you are not familiar with the Point & Figure methodology, we suggest you read "Point & Figure Charting, 4th Edition" by Thomas J. Dorsey and visit the PnF University, www.dorseywright.com. If you are not familiar with the PowerShares products, or Exchange Traded Funds (ETFs), we suggest you visit www.powershares.com.