Three ETFs Suggest Further Downside As Conditions Worsen For Growth Stocks - A Technical Review Of SMH, ITB, And AGG
Portfolio Pulse from David Keller
The S&P 500 is showing signs of a potential head and shoulders pattern, indicating a possible downturn. Three key ETFs - Semiconductors (SMH), Homebuilders (ITB), and Bonds (AGG) - are also showing signs of distribution and potential downside. SMH and ITB have shown weakened relative strength and negative momentum swings, while AGG has been in a confirmed downtrend. Higher bond yields, resulting from lower bond prices, could put pressure on growth stocks, further impacting the S&P 500.
September 20, 2023 | 6:31 pm
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NEGATIVE IMPACT
AGG has been in a confirmed downtrend, and lower bond prices leading to higher bond yields could put pressure on growth stocks.
AGG has been in a confirmed downtrend and a trendline using the highs since May shows a steady downtrend in bond prices. Lower bond prices mean higher bond yields, which could put pressure on growth stocks.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
ITB has shown signs of deterioration as the uptrend has stalled out, indicating potential for further downside.
ITB has shown a new lower high around $88 and the relative strength line has turned lower. This suggests that the industry group is underperforming the S&P 500 and indicates potential for further downside.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
SMH has shown weakened relative strength and negative momentum swings, indicating potential for further downside.
SMH has registered a lower high in late August and if the price pushes below $142, it would mean a new lower low. This, along with the weakened relative strength profile and negative momentum swing, suggests potential for further downside.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100