JETS: Chart of the Week
This week were’ going to be focusing on the airline ETF, called JETS. This airline ETF contains a lot of the names we see traded every single day: American Airlines, United Airlines, Delta, Southwest, and Alaska – and other names as well.
Let’s look at the airline group. It’s a better view (looking at the ETF) when you get a lot of names that are moving similarly, like home builders and energy names.
As you can see, the ETF made a really nice run up here in June and July, and it kinda stalled out. Ever since peaking in the middle of July, it’s been making lower highs and lower lows. That is a downtrend.
We breached the 50 day moving average last week on pretty heavy volume. The MACD has been on a sell signal since we made that high back in the middle part of July. On-balance volume, which is an accumulation of all the volume, also peaked in July and has been making lower highs and lower lows.
So not only has price action has been poor in JETS, the volume has been bad as well.
Where might his ETF land? The 200 day moving average is the most logical spot – let’s call it around 19.20, 19.17 right now. If it gets back down over there, we could see a little bit of a bounce. As you see back over here, we were rising above there and made a big pink candle, crashed down, and started going sideways over here before we made that ascent up towards the middle of that July high.
We’re back down showing a purple candle, which is strongly bearish on the JETS ETF right now.
I want to step back and look at the weekly chart. You can see here clearly lower highs and lower lows. It looked like we were trying to break out, because we did have a nice pattern of higher lows here. But that did not occur and we’ll probably make a run back down to this lower trend line and test that. We are on the 20 week moving average right now, and if we bust through that, there’s some downside over here. I think there’s support in the 17.50 range and perhaps a little bit lower than that if that area is breached.
So it’s not looking good for the JETS. We’ll see what happens over the next several days. Some of these stocks in the ETF have been struggling of late – AAL, which is American Airlines, and United Airlines have been struggling – and indicative of what’s happening with the ETF.
Don’t miss a single one of Bob’s charts! Get the Chart of the Week in your inbox every week!
