Boom Goes The Dynamite: Four ETFs With Ugly Charts

Despite the market's bullish ways recently, Tuesday excluded, there is still a host of ETFs out there with charts that are not attractive and that's putting it kindly. What may be even more troubling and perhaps threatening the market's overall tenor is that these ugly charts can be found across a broad swath of asset classes, not just the emerging markets, which would be a predictable location for some unappealing technicals. Let's look at some ETFs whose charts are ugly with a capital "U." 1) Global X China Consumer ETF CHIQ: CHIQ's chart is accompanying picture for this piece, and as you can tell, it ain't pretty. A pretty obvious head and shoulders pattern has formed and if $16 doesn't hold as psychological support, there's no telling how far CHIQ could tumble. Add to that the fact that there's not much reason to be long China ETFs right now and you have a toxic combination. 2) WisdomTree Dreyfus New Zealand Dollar ETF BNZ: In the world of currency ETFs, BNZ doesn't get a lot of attention, which is surprising because forex traders love trades involving the kiwi. Maybe it's best to short the kiwi these days because this is another dangerous chart with an obvious H&S pattern. A move below $22.50 probably takes BNZ to $20. 3) Consumer Staples Select Sector SPDR XLP: At first glance, XLP's chart doesn't look that bad and one might think this is the ideal way to play some defense in a volatile market. Think again. XLP is close to making a double top, something two other comparable ETFs have already done. If support at $29.50 breaks, XLP slides another $2-$3. 4) SPDR Dow Jones Industrial Average DIA: This one is a bit of stretch as of today and the chart looks pretty healthy, but Barron's notes that some Dow constituents are showing weak technicals. Sure, the high-price tag guys like IBM IBM, Caterpillar CAT and McDonald's MCD can do the heavy lifting for the Dow for a while, but how long will it be before poor technicals in the likes of Boeing BA and Wal-Mart WMT infect the rest of the index?