The US Dollar is determined to have a showdown with its 200-day.

With all the global tensions I would have thought the dollar would be doing better. I haven’t had time to read the news so I don’t know if this selling is news related.

Or maybe it doesn’t matter. People just didn’t want to own dollars today.

Another lower low and a break of the 200-day would be an additional boost for the foreign ETFs which have been signaling strength for some time now.

Rates

This spreadsheet is telling us that fixed income is gaining in relative strength, but it still has a way to go before it starts to outperform stocks.

I think we need to see TLT begin to work its way up this list before getting too excited about this group of ETFs.

However, in the short-term, TLT is performing well and the chart looks promising.

It is always nice to have some correlation indicators when you are trying to decide where rates are headed. From the looks of this chart, rates are going lower for now.

The Leader List

Pharmaceuticals dropped off the leader list. I added PPH to the list because it is more oriented towards traditional large cap Pharma than XPH.

The market is in a correction phase which means it is time to start getting ready to decide where to put money when the lows are in. 

So, I marked the ETFs in blue that I think are still solid longer-term leaders even though they might be pulling back in price at the moment. I picked these longer-term leaders based on their scores from ETFScreen.com.

This chart is a mess in the short-term. The 50-day is below the 200-day for starters, and the most recent breakout has failed.

Maybe it is just my bias in favor of health care, but this longer-term chart of XPH shows some promise. The sideways consolidation makes sense after such a remarkable rise in 2013-2014.

This is a defensive group, and I still think it might do well in the final stages of this aging bull market.