Well, it’s time to hunker down and get ready for another week of market action. I hope you all enjoyed the long weekend! The good times always go by too fast don’t they?
Be sure to check out my favorite reads of the week from around the financial web. This week’s list was killer.
A major fibonacci level has stalled the S&P 500’s breakout (thus far). That’s concerning until it’s taken out.
S&P 500 Chart
The choppy market action has made this a heck of a stock pickers market – the chaser’s playbook has been working well.
Here’s a quick overview of several key sectors that I’ll be following in the week ahead.
Biotech
The Biotech iShares ETF (IBB) is testing a key technical resistance level. It’s formed a descending channel pattern and what happens here should bear some importance.
Treasuries are setting up for a bounce and seem to be a top market theme heading into the week. Check out this chart of the iShares 20+ Year Treasury Bond (TLT).
Emerging Market Bonds continue to hold up well and are finding buyers just above an important pivot level.
Real Estate is strengthening in a consolidation/basing pattern at the 200 day moving average.
Financials have broken out to new 52-week highs. Momentum looks weak but perhaps it is just temporary as the market works itself out.
A Look Overseas
For the first time in weeks Hong Kong followed Shanghai higher Friday. That’s a big signal in my opinion. The Hong Kong iShares (EWH) broke a continuation triangle higher on Friday. Put this one on your radar.
Russia via the Market Vectors Russia ETF (RSX) looks broken and may offer a good opportunity on the short side up here.
Copper
Various Base metals are testing bounce levels. Copper is testing its rising 50 day moving average.
Lastly, the U.S. Dollar is strengthening, but the Euro and Aussie dollar (not shown) are set to test key support early in this week.
Thanks for reading.
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No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
