Market Recap: What analysis of key sectors can show us

In this article, Forrest Crist-Ruiz, assistant director of trading research and education at MarketGauge.com, takes a look at what different ETFs and indices are doing, and what this might mean for the week’s action.

On Friday, non-farm payrolls were announced with a disappointing 266,000 jobs created compared to the roughly one million that economists had predicted.

However, the gap in expectations did not result in a market selloff.

This could show that investors are giving more weight to the US Federal Reserve’s reaction to the report than the report itself.

With that said, let us look at Mish’s economic modern family on a weekly basis to filter out market noise. First off is the iShares Transportation Average ETF [IYT]. IYT was the only sector to close at new highs.

This is important, because IYT has kept us from taking a bearish market stance based on its underlying strength when compared to the other family members.

Next is the iShares Russell 2000 ETF [IWM], which closed roughly unchanged for the week.

Currently, IWM is showing more consolidation within its current range of $215-$234.

On the other hand, the SPDR S&P Retail ETF [XRT] and SPDR S&P Regional Banking ETF [KRE] closed higher on the week and are sitting close to new highs.

Additionally, the iShares Nasdaq Biotechnology ETF [IBB] was able to hold its 50-week moving average at $145.17.

Last, we have the VanEck Vectors Semiconductor ETF [SMH]. Like IWM, it was relatively unchanged for the week closing up 0.25% on Friday.

The important takeaway is that every family member held over main support, with XRT and KRE sitting close to new highs, along with IYT placing another consecutive all-time high for the week.

This article was originally published on MarketGauge. With over 100 years of combined market experience, MarketGauge's experts provide strategic information to help you achieve your investing goals.