Long And Short Of Short Interest - Tuesday, March 12

Here is a brief review of period-over-period change in short interest in the February 19-28 period in 10 S&P 500 sectors.

XLB (SPDR materials ETF)


Two weeks ago, XLB (55.51) was rejected at 56. This resistance goes back a couple of years. On the weekly, there is room for continued unwinding of overbought conditions. On the daily, however, bulls have a shot at that level again. The 200-day moving average (55.95) lies around there as well. The ETF has not been above the average since late September last year.

XLE (SPDR energy ETF)


Last Friday, XLE (64.90) found support at the 50-day, even though the week produced a bearish engulfing candle. In the past three weeks, the ETF was denied twice at just under 67. A test of that level is the best bulls can hope for near term. Shorts continue to cut back, and the weekly chart remains way extended.

XLF (SPDR financial ETF)


XLF (26.24) remains trapped between the 50- and 200-day. Several times over the past couple of weeks, the latter rejected breakout attempts, even as the 50-day was just about tested last Friday – successfully. It needs to break one way or the other before a new trend is established.

XLI (SPDR industrial ETF)


XLI (74.90) bulls defended the 200-day on Monday. Shorter-term averages are rolling over. Shorts added a tad in February – but not enough to cause a major squeeze. That said, they may be forced to rethink their bias near term should the ETF rally past 77-plus. On the weekly, several momentum indicators have turned lower.

XLK (SPDR technology ETF)


Last week’s bearish engulfing candle was preceded by a hanging man on XLK (71.31). Bulls are not giving up that easy, though. After losing the 200-day intraday last Friday, this week started out strong with a 2.2-percent rally Monday – firmly back above the average. For continued momentum, they need to take out last week’s high of 71.82, which approximates the daily upper Bollinger band.

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Disclaimer: This article is not intended to be, nor shall it be construed as, investment advice. Neither the information nor any opinion expressed here constitutes an offer to buy or sell any ...

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