ETF Outlook For Tuesday, May 20, 2014
SPDR S&P 500 ETF (NYSE: SPY)
The SPY has pulled backed several times over the last month and each short-lived bout of selling has followed a similar pattern. The ETF crossed below the 50-day moving average during the trading day, only to close above the indicator and then rally the next few days.
On Thursday and Friday the ETF breached the indicator, only to close off the intraday lows. Yesterday the ETF rallied to close near the high of the session and thus the pattern continues. The 50-day moving average is currently at $186.83.
iShares MSCI Thailand Inv. Market ETF (NYSE: THD)
The army declared martial law in the country in response to six months of protests, sending the Thai stock market down over 1 percent Monday night. Thailand has been overshadowed by the Russia/Ukraine situation, so perhaps some were surprised by the army's move. Nonetheless the long running protests have sometimes become deadly.
Related: Catching Up With The BRIC ETFs
The ETF has been struggling for the last year, but was able to rally off a multi-year low hit in early January. Looking ahead, the risks seem to outweigh the rewards for most investors.
Global X Social Media ETF (NASDAQ: SOCL)
The high-flying social media stocks were moving again yesterday and SOCL is now nearly two weeks removed from its 2014 low. The ETF has yet to build any sustainable momentum to the upside, but typically the first step in the process is building a base and that is underway.
The support level to keep an eye on is $16.36 and if it can close above $17.26 it would be a bullish breakout.
EG Shares India Infrastructure ETF (NYSE: INXX)
The rally in all things India continued on Monday as investors remain bullish after the election results of last week.
An Indian ETF that does not get much press, but has experienced a sudden surge in volume, is INXX. The niche infrastructure sector has rallied 21 percent in the last seven trading sessions. The volume went from a few thousand shares per day to average over 500 thousand the last two days.
There will be a pullback in the coming days as nothing goes straight up, however it appears investors view the sector as one of the big winners with the new political party in charge.
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