etfmsolutions: VDX Updates for SPY, VIX & XLU...03.07.16

Monday, March 7, 2016

VDX Updates for SPY, VIX & XLU...03.07.16

This week's VDX updates are in sync with the M1 SPY update posted yesterday. As expected, we did see some modest deterioration of SPY momentum today and volume appears to be dwindling as well. Traders are clearly testing overhead resistance and today's action could be termed a draw.
From a strictly technical standpoint the XLU VDI+/- looks the most bullish of the charts.
Keep in mind these charts reflect Friday's prices and a quick check of today's (Monday) action bears out that XLU was the best bet.
The weakest link in the majors was QQQ while IWM made additional gains.
IWM bulls argue that the Russell's relative lack of exposure to international geopolitical turmoil makes them less likely to retreat when the more globally exposed SPY, QQQ and DIA sustain weakness. All other factors being equal that argument does make some sense.

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