Two ETFs To Watch (VGK, IYT) [iShares Dow Jones Transport. Avg. (ETF), Vanguard FTSE Europe ETF]

market outlookMorpheus Trading: The Nasdaq Composite regained support of its 50-day moving average on higher volume yesterday, which was the first clear sign of accumulation in a few weeks. There was some selling in the final 45-minutes of trading, as the Nasdaq pushed into resistance from prior swing highs of the past six weeks.

The big question now is can the Nasdaq hold the 50-day MA and push through the 4,170 – 4,185 resistance level next week, without printing another bearish distribution day?

Transports continue to press higher, but the current light volume advance to new highs on wedging price action is not very inspiring.

The key here is to watch the current uptrend line for a break, which would be a bearish sign:

$IYT weak volume rally

Vanguard Europe ETF ($VGK) has formed a tight trading range just below the highs of the current base in May.

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