NEW YORK (TheStreet) - Friday's close resulted in negative weekly charts for the Dow Industrials, S&P 500, Dow Transports and Russell 2000, but not for the Nasdaq, which ended the week above its five-week modified moving average at 4110.
Among the 11 sector exchange-traded funds I track, eight ended last week with negative weekly charts. The exceptions are Utilities Select Sector SPDR (XLU), which has a positive weekly chart, and the Technology Select Sector SPDR (XLK) and the Health Care Select Sector SPDR (XLV), which have neutral weekly chart because they closed above their five-week modified moving averages at $34.99 and $55.72, respectively.
The tech sector ETF has a similar weekly chart as the Nasdaq explaining the neutral pattern that includes declining 12x3x3 weekly slow stochastics and weekly close above its five-week MMA. The health care ETF has the same pattern.
The utilities sector ETF has a positive weekly chart which consists of a weekly close above its five-week MMA at $38.36 with its 12x3x3 weekly slow stochastic rising above 20.00 on a scale of 00.00 to 100.00.
Below I provide my buy-and-trade profiles for the eight ETFs that ended last week with negative weekly charts. These patterns may shift to neutral at the end of this week if Federal Reserve Chair Janet Yellen offers dovish comments in her testimony before Congress, which starts Tuesday in the House. The market wants the new Fed chairman to indicate that the tapering of quantitative easing may not continue at its current pace if economic data weaken.
Materials Select Sector SPDR (XLB) ($44.92) traded to an all-time intraday high at $46.56 on Jan. 21 then fell to $42.78 on Feb. 5 staying above its 200-day simple moving average at $42.33. The weekly chart is negative with its five-week MMA at $44.73 with the 200-week SMA at $37.24. My semiannual value level is $43.29 with a monthly pivot at $44.97 and quarterly risky level at $46.18. My annual value levels are $39.61 and $37.62. A positive reaction to Yellen comments would have this ETF above $44.73.
Industrial Select Sector SPDR (XLI) ($50.15) traded to an all-time intraday high at $52.32 on Jan. 15 then fell to $48.38 on Feb. 4 staying above its 200-day SMA at $46.75. The weekly chart is negative with its five-week MMA at $50.59 with the 200-week SMA at $37.61. My annual value level is $43.34 with a semiannual pivot at $50.88 and quarterly and monthly risky levels at $51.33 and $51.95. A positive reaction to Yellen comments would have this ETF above $50.88.