The IBD 50 ETF $FFTY Is threatening a breakout – June 28, 2023
This is Scott with your Chart of the Day. I want to take a look at the Innovator IBD 50 Fund ETF ( NYSEARCA: FFTY ).
Now, I love Investor’s Business Daily. I watch IBD Live every now and again, I am always reading what the people at IBD are writing. So I love IBD, I think that the people over there do really good work. And one of the things that I follow is the IBD 50 ( NYSEARCA: FFTY ).
I am constantly scanning that as part of my scanning process. I was looking at the FFTY ( NYSEARCA: FFTY ) here, and this is basically an ETF that does a pretty good job, in my opinion, to kind of follow what the IBD 50 ( NYSEARCA: FFTY ) is doing. And the fact that, in my opinion, this looks like it is threatening a breakout tells me that the market breadth is improving nicely.
Now as you can see, I don’t think this is a chart that Bill O’Neil would buy because it is not really in a super strong uptrend right now. But it looks like it has the potential to get an uptrend started. And so that is interesting to me, not only just for this chart right here, in terms of a buy or a sell on this, but as a gauge for what the market is doing under the hood.
As we climb this wall of worry, and as all of these headlines are coming out, and everyone is terrified about what interest rates are doing, we’ve seen the market, kind of, continue a nice uptrend despite all of that. And now we are seeing that play out in some broad-based ETFs, and I think that is really good for the overall health of the market.
And so, looking at this ETF here you can see it is in a pretty strong downtrend for a while. It went sideways all year, and now it is finally able to hold above all the major moving averages. You can see that the 50-day moving average, in probably a week or two, will cross over the 200-day moving average and give you a nice golden cross.
I don’t typically trade on that because I think moving average crossovers are a bit laggy. But as I said, I feel like this is on the brink of a potential breakout. And if this can break out, then that is healthy for the overall market.
And so this is a chart that I look at to gauge the health of the market, and I wanted to share it with you. Hopefully, looking at this and seeing what is happening elsewhere in the market, other than with big tech stocks and indexes, may give you a little more confidence to be a little more active as this trend plays out.
And so you want to watch the IBD 50 ( NYSEARCA: FFTY ) for a potential breakout, a backtest, and then retest and break higher, and to see if this trend can actually continue.
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