The markets and many ETF's have started the week attempting to recover from last weeks selloff. As investors become clear of the actual tariffs that may be levied, along with the possibility of no tariffs at all, prices have once again started to move higher. The S&P 500 (NYSE: SPY) has moved higher by almost 2%, thanks to a strong rally on Monday. News of resignations out of the White House did push the markets lower after the close on Tuesday, but even in the overnight session buyers came in to support prices.
The Nasdaq 100 (NASDAQ: QQQ) continues to be the leading sector index. For the week it has almost recovered all of last weeks losses. Prices remain just off all time highs as the semiconductor space (NYSE: SMH) is one of the strongest areas of the overall markets. Needing only another 1.5% to get back to all time highs, the QQQ continues to be the index traders are impressed with.
The Russell 2000 (NYSE: IWM) has gained some attention this week as well. By Tuesday this week the IWM had already erased all of it's losses for last week. Trading volume remained consistent on both Monday and Tuesday as the bulls remained in complete control.
Retail stocks (NYSE: XRT) also remains mostly higher this week after earnings last week left the sector weak. This week there have been a few more earnings announcements that have supported the sector. Technical traders have no real excitement for this area of the market as the $47 are continues to be an area of resistance. This has caused a trendless, choppy sector for the last few weeks, leaving many in a waiting mode.
Lastly, home builders (NYSE: XHB) have not been able to recover off their lows. Last week the XHB sold off below the 200 day moving average and has reluctantly pushed back above it. With such a weak rally, many feel that the 200 day moving average has been broken and that any weakness in the markets could cause more selling pressure in the ETF.