Early Rally Fades as Major Markets Remain Overbought - Chaikin Analytics

Early Rally Fades as Major Markets Remain Overbought

The SPDR S&P 500 ETF (SPY) has a Neutral Chaikin Power Gauge ETF Rating but continues to outperform the broader IWV (Russell 3000 ETF). The fund remains overbought after trading through the first key resistance level of $265 on Monday. Chaikin Money Flow is neutral and SPY is below the declining long-term trend line. 

Yesterday’s attempt at a follow through to the upside took the SPY to within 5 poins of the next key zone in the $280 to $290 range. However, selling pressure intensified into the end of the day and SPY closed on the lows and will now attempt to hold above that important $265 mark.

The iShares Russell 2000 ETF (IWM) has a Neutral Chaikin Power Gauge ETF rating and continues to underperform the SPY. Our OB / OS Indicator is in an overbought position and Chaikin Money Flow is bullish. IWM is below the declining long-term trend line and has a bearish Power Bar Ratio. The fund also faded into the close yesterday and the March 11th gap remains open. 

Support is near the $100 mark and resistance is near $120.

Share on facebook
Share on twitter
Share on linkedin

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top