Some Key Funds May Be On The Precipice

Volatility’s on the rise this month, and three popular ETFs are trying to hang on.

The Market Vectors Semiconductor ETF SMH, S&P SPDR Financial ETF XLF and S&P SPDR Energy ETF XLE had all slammed down to apparent support levels earlier in the year. At the same time, they’ve made a series of higher lows.

Some chart watchers may view that kind of price action as “bearish descending triangles” with the potential for more downside. They’ve also recently broken under their 200-day moving averages, another potentially negative signal.