SPDR S&P 500 ETF (SPY): SPY is breaking out to all-time highs as it is trading intra-day above its 2000/2007 peaks. A convincing move through this resistance could have significant technical implications. First off, it allows for a move towards psychological supply at 160 and then towards 168-170 in what might become a speculative market. By definition a speculative market is not sustainable and they typically end rather harshly, so SPY will need to be closely monitored. [A Technical Guide to SPY]
iShares MSCI Emerging Market ETF (EEM): A rather nasty looking head and shoulders top has been in the making since late-2009. From a near-term perspective there are a couple of things that need to be watched rather closely as they could begin to affect the intermediate to longer-term outlook. The first is that the 10-week moving average has rapidly approached the 30-week moving average from above. A move below the 30-week moving average could begin to set into motion sell executions. The second is how EEM reacts at the 2008 uptrend line. Violation of this support signals a changing of the long-term trend.
PowerShares QQQ (QQQ): The 4/7/13 negative outside week, the down trending 30-week moving average, the 4/5/13 downside gap, and weak relative strength (vs. SPX) are technical evidence that the right shoulder of a 14-month head and shoulders top may be forming. Initial support near 65-66 is now becoming increasingly significant as this corresponds to the 1/2/13 upside gap, the Feb. 2013 low, and the 2009 uptrend line. A violation here opens the door for a test of critical neckline support into the low-60s.
J. Beck Investments is an independent provider of technical research for ETFs.