The five major U.S. equity averages can be traded using five markets exchange-traded funds. The Dow Jones Industrial Average is best represented by Diamonds. The S&P 500 is represented by Spiders. The Nasdaq Composite is represented by the QQQs, which is the Nasdaq 100. Transports can be traded using iShares IYT. Small-caps are traded by iShares IWM for the Russell 2000.
Scorecard For The Five Equity Exchange-Traded Funds
The weekly chart for SPDR Dow Jones Industrial Average ETF (DIA) ($215.53 on July 21) is positive but overbought with the ETF above its five-week modified moving average of $213.39 and above its 200-week simple moving average or "reversion to the mean” at $177.95. The 12x3x3 weekly slow stochastic reading rose to 89.53, well above the overbought threshold of 80.00. Buy weakness to my quarterly value level of $203.15. My semiannual pivot is $214.93. Sell strength to my weekly and annual risky levels or $217.57 and $220.14, respectively. My annual value level is $150.83.
The weekly chart for SPDR S&P 500 ETF Trust (SPY) ($246.88 on July 21) is positive but overbought with the ETF above its five-week modified moving average of $243.14. The 200-week simple moving average or reversion to the mean is $206.05. The 12x3x3 weekly slow stochastic reading ended last week at 84.82, above the overbought threshold of 80.00. Buy weakness to my quarterly value level of $231.82. My weekly pivot is $246.42. Sell strength to my semiannual, annual and monthly risky levels of $252.96, $253.37 and $255.61, respectively. My annual value level lags $167.75.
The weekly chart for PowerShares QQQ Trust ETF (QQQ) ($144.11 on July 21) is positive with the ETF above its five-week modified moving average of $140.10. The 200-week simple moving average or reversion to the mean is $107.23. The 12x3x3 weekly stochastic reading rose to 71.69 last week, up from 68.88 on July 14. Buy weakness to my weekly and quarterly value levels of $140.68 and $131.86, respectively. My annual and monthly pivots are $139.42 and $144.24, respectively. Sell strength to my semiannual risky levels of $146.49 and $152.14.
The weekly chart for iShares Transportation Average ETF (IYT)($170.51 on July 21) is neutral with the ETF on the cusp of its five-week modified moving average of $170.52. The 200-week simple moving average or reversion to the mean is $147.53. The 12x3x3 weekly slow stochastic reading rose to 88.97 last week, well above the overbought threshold of 80.00. Buy weakness to my quarterly value level of $158.89. Sell strength to my semiannual and annual risky levels of $181.18 and $182.54, respectively.
The weekly chart for iShares Russell 2000 ETF (IWM) ($142.55 on July 21) is positive with the small-cap ETF above its five-week modified moving average of $140.63. The 200-week simple moving average or reversion to the mean is $119.59. The 12x3x3 weekly slow stochastic reading ended last week at 78.65, up from 76.32 on July 14. Buy weakness to my quarterly value level of $125.32. My semiannual pivot is $144.61. Sell strength to my annual risky levels of $154.33.
