Tuesday, February 3, 2026

ETF Technical Analysis Synopsis: February 03, 2026

ETF Technical Analysis Synopsis: February 03, 2026

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. I am not a professional financial advisor. Investors should conduct their own research and consult with a qualified financial professional before making any investment decisions.

Overall Market Insights

The latest technical analysis indicates a generally bullish outlook for major stock market ETFs over medium to longer-term horizons (15-30 days), driven by indicators such as MACD, RSI, and SMA crossovers showing upward momentum in broad indices. Sectors like technology (QQQ), energy (XOP), and retail (XRT) show strong buy signals, suggesting potential growth amid economic recovery and sector-specific tailwinds. However, short-term signals are mixed, with some sells in financials (XLF) and healthcare (XLV), reflecting possible near-term volatility. The market appears resilient, but caution is advised due to potential macroeconomic shifts.

Highlights of Bullish/Bearish Signals

  • Bullish: Strong BUY signals dominate in QQQ across all horizons, DIA for 20-25 days, SPY for 10 and 25 days, XOP for 15 and 30 days, and XRT for 25-30 days, pointing to momentum in tech, broad market, energy, and retail sectors.
  • Bearish: Strong SELL in XLF for 20 days, indicating potential weakness in financials; weak sells in XRT for 5-10 days and XLV for 5 days.

Comparisons to Prior Data (January 31)

Key changes include new BUY signals for IWM (30 days), URTY (10 and 25 days), XLE (25 days), and XLV (25 days). Downgrades from BUY to buy in DIA (15 and 30 days), UPRO (20 days), and XBI (20 days). New sells in XHS (5 days), XLK (25 days), and XLV (5 days). Overall, signals have strengthened in small-caps and energy while weakening slightly in some leveraged and health areas.

Explanations Tied to Technical Indicators

These signals are derived from a combination of technical tools including Absolute Price Oscillator (APO), Directional Movement Index (DMI), MACD, RSI, and SMA crossovers. Bullish consensus (buy/BUY) emerges when multiple indicators show positive momentum, such as upward crossovers and overbought RSI in growth sectors. Bearish signals (sell/SELL) indicate potential reversals from overextended trends or negative divergences.

Consensus Signal Table

ETF5 Days10 Days15 Days20 Days25 Days30 Days
BNDbuybuy
DIAbuyBUYBUYbuy
GLD
IJHbuyBUYBUYbuy
IWMbuyBUY
JNKbuy
KBEBUYBUYBUY
QQQbuyBUYBUYBUYBUY
SPYBUYBUYbuy
TQQQ
UPRObuyBUY
URTYBUYBUY
XBIbuybuyBUY
XES
XHBbuybuybuybuy
XHSsellBUYbuy
XLBbuy
XLEBUY
XLFsellSELL
XLIbuy
XLKBUYsell
XLP
XLREBUY
XLUBUY
XLVsellBUYbuy
XLY
XME
XOPbuyBUYbuyBUY
XRTsellsellbuyBUYBUY

Handling Strong Consensus Trends

For ETFs with strong BUY or SELL signals, recent sources provide mixed views:

DIA (BUY 20-25 days)

IJH (BUY 15,25 days)

IWM (BUY 30 days)

KBE (BUY 20-30 days)

QQQ (BUY multiple)

SPY (BUY 10,25 days)

UPRO (BUY 25 days)

URTY (BUY 10,25 days)

XBI (BUY 30 days)

XHS (BUY 20 days)

XLE (BUY 25 days)

XLF (SELL 20 days)

XLK (BUY 20 days)

XLRE (BUY 20 days)

XLU (BUY 15 days)

XLV (BUY 25 days)

XOP (BUY 15,30 days)

XRT (BUY 25,30 days)

What I Own

Full disclosure, as of Jan 30th, I own KBE, IJH, XLY and XOP.

Posted by Joe McVerry (@joe_mcverry) on X on February 03, 2026

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