Two ETFs To Watch For A Potential Buy [SPDR S&P Insurance ETF, Guggenheim Solar ETF]

market outlookMorpheus Trading: On the ETF side, we are monitoring the price action in Insurance ETF (NYSEARCA:KIE) for a low risk entry point off the 10-week MA. Note that the price action has tightened up this week (so far).

If $KIE can close out the week in a tight range it will have formed a bullish inside week, which would produce an ideal entry point above this week’s high next week:

$KIE TIGHT RANGE

Our current long position in solar ETF (NYSEARCA:TAN) is potentially forming a “three weeks tight” pattern on the weekly chart, if this week’s close is around $41.50. Three weeks tight is a constructive pattern within a base. Take a look:

$TAN 3-WEEKS TIGHT

If the recent swing low above $40 holds, $TAN will have two higher swing lows in place since bottoming out in May. While $TAN isn’t ready to attack the highs of the current base, we will look to add to the position if it continues to act well.

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