The SPDR S&P 500 ETF (SPY) has a Bullish Chaikin Power Gauge ETF Rating and continues to lag the IWV (Russell 3000 ETF). The OB / OS Indicator is moving lower with room to an oversold position, while Chaikin Money Flow is positive but declining SPY is above the long-term line and the Power Bar Ratio is bullish.
SPY has lost the key $340 level which is the breakout through the February highs. We now look for support in the $325 – $330 range to hold while the fund becomes overbought in order to believe that the uptrend from the March lows remains valid.
The iShares Russell 2000 ETF (IWM) has a Bullish Chaikin Power Gauge ETF rating and is performing in line with the SPY. Our OB / OS Indicator is moving lower in an oversold position and Chaikin Money Flow is bullish, barely. IWM is above the long-term trend line and has a bullish Power Bar Ratio.
Support is in the $145 – $150 range (which is now a key level to hold) while the $160 – $170 is the zone of resistance on the upside.
The Invesco QQQ ETF (QQQ) has a Very Bullish Power Gauge ETF Rating and is leading the SPY despite coming under near-term pressure. The OB / OS Indicator is moving lower with room to an oversold position and Chaikin Money Flow is bullish. The fund is above the rising long-term line and has worked off the extremely extended position that we highlighted last week.
Take-Away: The uptrends from the March lows remain in place for all three of the main market ETFs but near-term support levels are in the process of being tested as we speak. It is important for these levels to hold as the funds become oversold. Should that be the case, it will make sense to become more aggressive on the long-side of the portfolios once again.