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ETF Focus: Majors

This is a syndicated repost published with the permission of Slope of Hope – Technical Tools for Traders. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

The small caps is a tough read. If the bulls really start to run with the market, it could push back up to the magenta-colored retracement, which is the next Fibonacci higher.

Banks are quite clearly broken, in spite of higher interest rates.

The Mid-Caps have a beautiful top, but again, it might have a bit more strength (see price gaps). Those two horizontals each represent potential exhaustion points for a rally.

The S&P 500 fund has one gap left to close.

The Fibonacci is trickier with the NASDAQ, because the prices don’t seem quite as obedient with respect to those lines. The most important object at this point is the price gap, marked with a dotted line.

An important element in any NASDAQ bounce will be the semiconductors, which have been in an exquisitely clean downturn.

The biggest one of them all, the SPYders, has one more gap left to potentially fill, which is the anchor point for that dashed line.

Consumer staples is a messier chart, but keep an eye on that horizontal, which is this week’s peak.

Finally, consumer discretionary is quite a clean chart, with the price gap being the obvious exhaustion point.

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