1- SPX Performance
4- Sector ETFs: XLF Financials
5- Best & Worst 20 ETFs
6- US Dollar
7- XLP Consumer Staples
8- PEP Pepsico
9- EWW Mexico
10- MUB Muni Bonds
The SPX avoided its second straight 1% decline today, which only has happened once this year so far… 3/9 – 3/10. It wasn’t a valiant effort, especially with the final fade halting what looked like a spike into the close.
Overall, the index was net-flat for the final six hours. Of greater significance, it now has closed below its intra-day mid-point for the fourth straight session.
The SPX’s 3/31 breakout remains in play for now.
3-Breadth & Style
While still noticeably negative, the NDX actually had the “best” breadth today among the major indices, with some (not all) of its biggest names helping.
10/11 Sector ETFs finished lower for the second straight day, with Energy bucking the trend and leading again, especially from the internals perspective. Four (non-growth) sectors had 90% negative breadth readings.
XLF Financials was among four sector ETFs to drop at least 1%, and its breadth numbers were conspicuously worse than most of the other sector ETFs. It’s now sporting a clear double top-like pattern. Holding above the 31.5 zone now is very important.
5- Best and Worst 20 ETFs
Big decliners again convincingly outpaced big gainers, with only the Energy-related equity ETFs making respectable showings as a group.
The US Dollar notched a gain for the sixth time in the last seven days, pushed through the downtrend line from the 2022 highs, and its 14-d RSI now is at 66, the highest level since 2/24.
That last advance eventually lost steam when the short-term uptrend line was breached, which is something we should watch for again now.
7- XLP Consumer Staples
XLP fell for the seventh time in the last eight sessions today and now is close to support, its 200-Day MA and the uptrend line cited on Monday. Its 14-D RSI also got to nearly oversold territory today for the first time since late October. In other words, it appears short-term washed out and potentially ready to mount a bounce attempt.
PEP is XLP’s second biggest component, with a 10% weighting (PG is 14%). Thus, its undeterred two-month uptrend through early May was a major reason for XLP’s spring advance. Likewise, the sizable downturn the last two weeks has been a huge factor.
The decline (finally) pulled the RSI back from the mid-70s, which now sits at 35. It’s not quite oversold yet, and the 6.5% drawdown is less than prior pullbacks… But with the long-term uptrend still in play, it could attract dip buyers again soon.
EWW was one of just four ETFs we track to finish UP today. If its uptrend is for real, then this could be another buying opportunity: it’s pushing back above its 50-D MA, held its uptrend line and is coming off an RSI that nearly hit oversold territory – all of which led to rallies three prior times.
10-MUB Muni Bonds
MUB Muni Bonds is nearing a clear support zone and now is oversold again – two conditions that led to multi-week bounces over the last 12 months.