There are 6 leaders, one is really foaming | chart of art

After declining sharply through mid-April, stocks have rebounded over the past three weeks, with the S&P 500 SPDR (SPY) coming within 1% of its March high. This March high serves as a benchmark high that chartists can use to compare performance. Stocks and ETFs trading above their March highs are showing relative strength.

Current leaders include Consumer Staples SPDR (XLP), Utilities SPDR (XLU), Aerospace & Defense ETF (ITA), KBW Banks ETF (KBWB), Copper Mining ETF (COPX), Infrastructure ETF (IFRA), and Water ETF (PHO) Included. ). The CandleGlance chart below shows all new records reached in May. All six are on a clear upward trend.

The CandleGlance chart above shows XLU with a cup with a handle breaking above 66 in late April. This signal was introduced on ChartTrader on April 30th. Despite the strong extension of this breakout, we are concerned because XLU is trading approximately 13% above its 200-day SMA. The following chart shows XLU in percentage terms against MA(1,200,1). XLU was over 13% above its 200-day SMA in February 2020 and April 2022 (dotted line). This ETF is frothy and ripe for a correction. This indicator is part of the TIP Indicator-Edge plugin for StockCharts ACP.

This week, TrendInvestorPro (ChartTrader) featured tradable patterns for Vertex Pharma (VRTX), Union Pacific (UNP), Home Construction ETF (ITB), Lennar (LEN), and CrowdStrike (CRWD). We will continue to monitor short-term breadth during this rebound and update our 14-indicator composite breadth model every Tuesday. Click here for more information.

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