Conclusion, Investment Implications, Strategy
The SPDR S&P Insurance ETF (KIE) is testing and rebounding from the top of its recent investor indecision pattern, currently situated around 51.30, which was tested as support yesterday (Aug 5th). This is where the Jly 15th breakout higher should resume for its 56.00 upside target, currently 7% above the market, to remain valid.
KIE Rebounding From Support, Still Targets 56.00
The upper panel of Chart 1 below shows that the SPDR S&P Insurance ETF (KIE) is testing and rebounding from the top of its recent investor indecision pattern, currently situated around 51.30, which was tested as support yesterday (Aug 5th). This is where the Jly 15th breakout higher from this indecision area should resume for its 56.00 upside target, currently 7% above the market, to remain valid. The middle panel shows that the total net assets invested in KIE rose above their 21-day moving average on Jly 10th to indicate a trend of monthly expansion, characteristic of sustainable Tactical price advances. The lower panel shows that KIE has been outperforming the benchmark S&P 500 (SPX) on a Tactical basis since Jly 12th.
As long as these three conditions remain true, KIE is likely to continue moving higher in the weeks ahead.
Current Sector & Industry Group Ideas
Table 1 below is also accessible via the Asbury ETF Trade Ideas rectangle at the top of the Research Center.
Click the table to make it larger