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Mish Schneider

Market Recap: What analysis of key sectors can show us

In this article, Forrest Crist-Ruiz, assistant director of trading research and education at MarketGauge.com, takes a look at what different ETFs and indices are doing, and what this might mean for the week’s action.

On Friday, non-farm payrolls were announced with a disappointing 266,000 jobs created compared to the roughly one million that economists had predicted.

However, the gap in expectations did not result in a market selloff.

This could show that investors are giving more weight to the US Federal Reserve’s reaction to the report than the report itself.

With that said, let us look at Mish’s economic modern family on a weekly basis to filter out market noise. First off is the iShares Transportation Average ETF [IYT]. IYT was the only sector to close at new highs.

This is important, because IYT has kept us from taking a bearish market stance based on its underlying strength when compared to the other family members.

Next is the iShares Russell 2000 ETF [IWM], which closed roughly unchanged for the week.

Currently, IWM is showing more consolidation within its current range of $215-$234.

On the other hand, the SPDR S&P Retail ETF [XRT] and SPDR S&P Regional Banking ETF [KRE] closed higher on the week and are sitting close to new highs.

Additionally, the iShares Nasdaq Biotechnology ETF [IBB] was able to hold its 50-week moving average at $145.17.

Last, we have the VanEck Vectors Semiconductor ETF [SMH]. Like IWM, it was relatively unchanged for the week closing up 0.25% on Friday.

The important takeaway is that every family member held over main support, with XRT and KRE sitting close to new highs, along with IYT placing another consecutive all-time high for the week.

This article was originally published on MarketGauge. With over 100 years of combined market experience, MarketGauge's experts provide strategic information to help you achieve your investing goals.

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

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