SPXL stock price surged intraday to $102.12 before retracing slightly, reflecting volatility in U.S. equities as Treasury yields eased. Analysts are eyeing the 105 technical resistance, with breakout models indicating a possible rally if earnings reports remain broadly positive. There were already signs the economy could be cooling off as the month of April revealed slower job growth. The optimism helped to fuel an early May rally after the major stock market indexes took a breather to end the month of April. The three-month chart below corroborates with this drop after the three funds dipped, before subsequently picking up again in May. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. SPXL stock price hovered around $100.45 after Powell’s comments on interest rates hinted at potential cuts later this year. Leveraged ETF traders are watching for confirmation via upcoming CPI data, which could ignite a broader equity surge.
