The S&P 500 and NASDAQ 100 Indexes both reversed at important MOB band trading price targets. They also broke very short-term up-trends.
This prompted me to turn bearish.
The Russell 2000 Index also reversed from an important resistance zone while seeing its momentum turn down. This is another short opportunity (using a stop just above the 50-day moving average).
This “cautious” theme continues as we look at other major sectors and indices, with the Dow Jones Transportation Average mired in a 3 month down-trend and looking to head lower yet.
The iShares Software Sector ETF (IGV) has also stalled out at a long-term MOB band price target. I am on alert for a possible breakdown for this key ETF.
The Energy Sector ETF (XLE) also triggered a sell signal as it reversed from a key resistance zone and broke its short term up-trend.
On a positive note, the Semiconductors ETF remains within its up-trend channel, so we may see a bit more strength before stalling.
More supporting investment research charts:
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