ETF Trends: Momentum Meets Resistance as Economic Reality Meets Investors

J Clinton Hill submits:

ETF U.S. Equity Indexes: Market momentum for equities met resistance on Friday. As I mentioned previously mentioned in one of my reports, there has been an irrational divergence between market technicals and fundamentals. Perhaps the market is beginning to perceive the reality that consumers already recognize. Times are tough and economic rehabilitation for Main Street and Wall Street will take longer than anticipated.

There were two short-term downgrades for equity trends: QQQQ and IWM. These indexes have been leading the broad equity markets on the upside and could very well do the same in downward market correction. While equities have breached the resistance levels near late 2008, they have have yet to do so in a decisive manner, i.e. considerable price performance exceeding resistance levels and confirmation with expanding volume.

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