The SPDR S&P 500 ETF (SPY) has a Neutral + Chaikin Power Gauge ETF Rating but is now lagging the IWV (Russell 3000 ETF) which is an encouraging sign of increased participation in the market (if you are a bull) as small caps have performed well of late. The OB / OS is moving higher in an oversold position and Chaikin Money Flow is slightly bullish. Interestingly, the declining long-term trend line is just overhead and coincides with the key 61.8% retracement level of the decline in the index.
A break of $293 – $300 opens the door to a move to 3,110. Should that level be broken to the upside, investors have to be open to the idea of the market retesting the highs. On the downside, a break of last week’s low near $280 would set the stage for a move to the $257 – $265 range.
The iShares Russell 2000 ETF (IWM) has a Neutral Chaikin Power Gauge ETF Rating and continues to underperform the SPY, though the intensity of underperformance has been dampening of late. The OB / OS Indicator is now in an oversold position and Chaikin Money Flow is neutral. The fund is below the declining long-term trend line and the Power Bar Ratio is bullish at 372 to 349.
The fund has resistance near $135. On the downside, there is first support near $120 and then in the $105 – $115 range below that.
The iShare 7 – 10 Year Treasury Bond ETF (IEF) has a Very Bullish Chaikin Power Gauge ETF Rating and is slightly lagging the SPY. The OB / OS Indicator is moving lower as Chaikin Money Flow is bearish but improving. IEF is above the rising long-term trend line as it continues to consolidate a strong move into the March highs.
Support is in the $118 – $120 range while resistance is in the zone between $123 and $124.