by Steve Auger
The sector ETFs bounced last week and the longer term picture for some is unclear. However, in some cases, bearish positions should be re-established.
iShares DJ US Telecom
ETF Symbol: IYZ
iShares DJ US Technology
ETF Symbol: IYW
DJ US Technology remains bearish this week. WilliamsR is signalling a bearish trend. The price should fall to the 200-day Simple Moving Average in the coming week(s) and eventually down to the support level of $66.
iShares DJ Transportation Average
ETF Symbol: IYT
iShares DJ US Basic Materials
ETF Symbol: IYM
DJ US Basic Materials had a strong bounce last week but the chart remains bearish. WilliamsR is signalling a bearish trend. The ETF should eventually retest the support level at $61.
iShares DJ US Consumer Goods
ETF Symbol: IYK
DJ US Consumer Goods recovered to end the week at a support level and this is a good opportunity to short this ETF.
iShares DJ US Industrial
ETF Symbol: IYJ
Remain caution on DJ US Industrial this week as there are mixed signals and the price is somewhere between support and resistance levels.
iShares DJ US Healthcare
ETF Symbol: IYH
DJ US Healthcare doesn't appear to be going anywhere. Stay on the sidelines.
iShares DJ US Financial
ETF Symbol: IYF
DJ US Financial bounced last week. IYF is approaching a significant resistance level and should continue its downward trend in the near future.
iShares DJ US Energy
ETF Symbol: IYE
DJ US Energy is in a long-term bear market. I have drawn an Andrews Pitchfork on the chart - not one of my favorite indicators, but let's see if the price stays within the pitchfork boundaries. I expect this ETF to continue down.
iShares DJ US Consumer Services
ETF Symbol: IYC
DJ US Consumer Services is giving mixed signals. Stay on the sidelines until a clearer picture arises.
iShares DJ US Utilities
ETF Symbol: IDU
DJ US Utilities price is bouncing between support and resistance. Stay on the sidelines.
Disclosure: The author "Walks the walk" in addition to "Talking the Talk".