Utilities ETF XLU relative to S&P 500 ETF SPY continues to make new long term higher lows.

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This could mean a few things including: rates are going to stay low for the foreseeable future, the equity market actually is in the later stages of a market rally OR these companies are simply poised to outperform via benefits from improved profitability via grid technology and improving pipeline infrastructure.

The S&P 500 ETF SPY relative to Long Term U.S. Treasuries ETF TLT has rolled over below the 50 day moving average, but remains over old resistance. This will be a key ratio to watch throughout Q2 and into Q3.

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Energy ETF XLE broke the downtrend from December, but it appears that move is temporary as the breakout has been lost and a former trend support line has become resistance.


All World Index ex US ETF ACWX has pulled back to the 10 week moving average. A measured move higher to the 47-48 area remains with resistance around 45 in play as well.


Europe ETF FEZ is also approaching the 10 week moving average as it has an open measured move from the falling channel breakout to the 38-39 area as well.


The U.S. Dollar Index remains rangebound, stuck between the 99 and 102 levels. The range breakout will have a major impact on markets, whenever that occurs.

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Thus far in 2017, the drift lower in the dollar has helped non-US stocks outperform as seen in the Emerging Markets ETF EEM to S&P 500 ETF SPY ratio.

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Trade ’em Well

Disclosure:  I have no position in any securities mentioned

For inquiries on premium research for both individual investors and professionals, contact:  Aaron@NorthStarTA.com