SPY Pulls Back From Record Levels But Still Adds More Than 3% on the Week - Chaikin Analytics

SPY Pulls Back From Record Levels But Still Adds More Than 3% on the Week

The iShares US Home Construction ETF (ITB) has a Very Bullish Chaikin Power Gauge ETF Rating and has been leading the SPY since the start of the year. The OB / OS Indicator is moving higher in an oversold position and Chaikin Money Flow is bullish. ITB is above the rising long-term trend line and has a bullish Power Bar Ratio at 20 to 7.  

Monday’s Macro Market Trends

Equities

The SPDR S&P 500 ETF (SPY) has a Bullish Chaikin Power Gauge ETF Rating and continues to outperform the broader IWV (Russell 3000 ETF), with the intensity of that outperformance increasing of late as small caps have started 2020 as an underperforming area of the market. The OB / OS Indicator is moving higher from an oversold position and Chaikin Money Flow is bullish. SPY is above the rising long-term trend line and traded to a new closing high last Thursday.     

In the near-term, there is price-based support in the $320 – $325 range. Below that, the next key zone is in the area between $300 and $310  which holds the breakout level of the July – October consolidation for SPY. On the upside, resistance appears to be forming in the $330 – $335 range, where the SPY currently finds itself.

Small Caps

The iShares Russell 2000 ETF (IWM) has seen its Chaikin Power Gauge ETF Rating move back to bullish this week. The fund remains an underperformer relative to the SPY and Chaikin Money Flow has dipped into a negative reading. The OB / OS Indicator is moving higher from an oversold position and IWM is above the rising long-term trend line.   

Key support at the $160 breakout level and will be important in determining the likely path of small caps in the near-term.   

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