ETF Trends
ETF Trends

Now that the Federal Reserve’s rate cut has come to the rescue, the general market and many exchange traded funds (ETFs) have come back above their long-term trend lines (200-day moving average). The S&P 500 is up 4.8% above its trend line, and the general markets overall are up about 8% since the market low on Aug. 15. Some ETFs that have made large rebounds since the market low include:

  • iShares Russell 2000 Growth Index (IWO) – up 7.6%; up 4.7% above its long-term trend line
  • iShares MSCI Netherlands Index (EWN) – up 12.8%; up 10.0% above its long-term trend line
  • Market Vectors Steel ETF (SLX) – up 33.0%; up 27.2% above its long-term trend line

Some areas still below their long-term trend line include:

  • Broadband HOLDRs (BDH) – 2.1% below
  • iShares MSCI Japan Index (EWJ) – 3.0% below
  • SPDR Dow Jones Wilshire International Real Estate (RWX) – 3.1% below

Spy_etf_chart

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.