Movement In Lennar And Apple Could Drive 2 ETFS

iShares U.S. Home Construction ETF ITB

The ETF’s largest holding, Lennar LEN, is scheduled to report earnings before the bell this morning. With a 10 percent allocation with a niche sector ETF there is a high probability that ITB will move in the direction of LEN once the opening bell rings.

The ETF had a solid day yesterday and any good news could send it back to its best close in three months. The action will also be a good indicator if Wall Street believes the housing market is continuing its comeback.

SPDR Technology ETF XLK

Shares of the ETF’s largest holding, Apple AAPL, have fallen over 4 percent in the last two weeks after the company split its shares by 7-to-1. The pullback has dropped the stock to an oversold level not seen since bottoming out in April.

Related Link: Monsanto To Drive Movement In Agribusiness ETF

If the chart follows past patterns it could lead to a rally in AAPL shares, which would have an immediate impact on XLK because the stock makes up nearly 15 percent of the allocation. A close above $38.50 would be a significant breakout for the ETF.

SPDR Consumer Staples ETF XLP

The ETF continued to lag the overall market recently as it closed lower yesterday, while the overall market rebounded. The ETF is now down 2 percent from the all-time high, which is a minor pullback. However, the weakness relative to the overall market is troubling. If the ETF can hold the 50-day moving average at $44.50 in the next few days it would be a bullish signal for the short-term direction of the ETF and overall sector.

SPDR S&P 500 ETF SPY

Today expect higher than average volatility in the equity market for two reasons.

First, are a lot of traders/investors away from their desks enjoying the first week of summer. Second, the U.S. soccer team plays Germany today at 12pm ET in one of the biggest games in the country’s soccer history. Be ready for some wild swings in the SPY.