The Rotation Report: Preparing For The Week Ahead

Well, it’s time to hunker down and get ready for another week of market action. I hope you all enjoyed the long weekend! The good times always go by too fast don’t they?

Be sure to check out my favorite reads of the week from around the financial web. This week’s list was killer.

A major fibonacci level has stalled the S&P 500’s breakout (thus far). That’s concerning until it’s taken out.

S&P 500 Chart

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sp 500 market chart topping candles may 26 2015

The choppy market action has made this a heck of a stock pickers market – the chaser’s playbook has been working well.

Here’s a quick overview of several key sectors that I’ll be following in the week ahead.

Biotech

The Biotech iShares ETF (IBB) is testing a key technical resistance level. It’s formed a descending channel pattern and what happens here should bear some importance.

ibb biotech etf chart technical resistance may 26 2015

Treasuries are setting up for a bounce and seem to be a top market theme heading into the week. Check out this chart of the iShares 20+ Year Treasury Bond (TLT).

tlt 20 year treasury bond etf technical support may 26 2015

Emerging Market Bonds continue to hold up well and are finding buyers just above an important pivot level.

emb emerging markets bonds etf chart may 26 2015

Real Estate is strengthening in a consolidation/basing pattern at the 200 day moving average.

iyr real estate sector etf chart may 26 2015

Financials have broken out to new 52-week highs. Momentum looks weak but perhaps it is just temporary as the market works itself out.

iyf financials sector etf chart may 26 2015

A Look Overseas

For the first time in weeks Hong Kong followed Shanghai higher Friday. That’s a big signal in my opinion. The Hong Kong iShares (EWH) broke a continuation triangle higher on Friday. Put this one on your radar.

ewh hong kong etf chart may 26 2015

Russia via the Market Vectors Russia ETF (RSX) looks broken and may offer a good opportunity on the short side up here.

russia etf rsx technical resistance may 26 2015

Copper

Various Base metals are testing bounce levels. Copper is testing its rising 50 day moving average.

copper prices chart technical support level may 26 2015

Lastly, the U.S. Dollar is strengthening, but the Euro and Aussie dollar (not shown) are set to test key support early in this week.

fxe euro currency etf chart technical support may 26 2015

Thanks for reading.

 

Follow Aaron on Twitter:  @ATMcharts

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No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.