Going into today's session, we have two new potential ETF swing trades on today's Wagner Daily watchlist.

First is the Real Estate Index ETF ($IYR), which broke out from a solid base at $69 in mid-April. The current consolidation above the 20-day EMA has been bullish, with volume well below average over the past two-weeks (light volume during consolidation is positive).

A continuation breakout is a move from a short-term consolidation pattern of two to three weeks or so. It is not as long as the typical base breakout, which is usually seven to eight weeks or more in length.

Volume has dropped off the past two weeks, coming in well below average:



The second ETF setup is a potential pullback entry in the Platinum and Palladium ETF ($SPPP). The price action has pulled back to the rising 10-day MA on lighter volume. We are looking for an entry off the 10-day MA if Thursday's low holds. If not, then an entry off the 20-day EMA is likely.



For both the $IYR and $SPPP trade setups, regular subscribers of our swing trading newsletter should note our exact entry, stop, and target prices in today's report.

Although prices of the major indices have been pushing into new highs (which is bullish), the recent light volume breakout in the S&P 500 is not ideal. The NASDAQ is running into resistance, but is in pretty good shape as well, with the 10 and 20-day MAs crossing above the 50-day MA.

How the NASDAQ reacts to the overhead resistance next week should provide further clues as to the market's next move.

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.