economy

February 25, 2026

A key financial ETF is now so depressed that it may be ready to bounce vs. the broad market

IAI's sell-off in 2026 has led to underperformance vs. the S&P 500, leaving the IAI/SPX relative ratio oversold, a rare occurrence over the past few years.

A key financial ETF is now so depressed that it may be ready to bounce vs. the broad market

TL;DR

  • IAI has fallen to its November low, testing a key support zone.
  • A potential bearish inverse cup-and-handle pattern is forming near this support.
  • The ETF's sell-off has led to underperformance against the S&P 500, with the IAI/SPX ratio becoming oversold.
  • A bounce is expected on both absolute and relative bases, but upside follow-through is crucial.
  • Long-term analysis suggests IAI may consolidate towards the middle of its rising channel rather than hug the upper boundary.

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