Following the inflation data, speculation on the Fed's next moves, recession fears, and calls for a soft landing, I'm craving simplicity.
By turning to my Economic Modern Family, I've found two sectors that offer straightforward insights into what’s next for the overall market.
1. Retail Sector
Our dear Granny Retail XRT will tell us a lot after the economic data is already out, and then the retail sales and earnings reports.
This is a weekly chart.
With the price sitting right on the 200-weekly moving average, if XRT closes above it or below it, the next moves will be obvious.
For those playing along, that number is 73.50. Write it on a post and paste it to your computer screen.
2. Transportation Sector
Transportation IYT directly ties in with retail, if people are buying, goods are moving.
This is a weekly chart.
With the price sitting right on the 50-weekly moving average, if IYT closes above it or below it, the next moves will be obvious.
For those playing along, that number is 64.25. Write it on a post and paste it to your computer screen.
Yes friends, with some patience and a plan with real numbers, you can do this!
ETF Summary
- S&P 500 (SPY) 540 cleared which makes this level pivotal
- Russell 2000 (IWM) 210 resistance 199 support
- Dow (DIA) 400 pivotal
- Nasdaq (QQQ) 475 area resistance
- Regional banks (KRE) 50-52 support
- Semiconductors (SMH) 240 resistance
- Transportation (IYT) Eyes here to see if it can clear back over the 50-WMA
- Biotechnology (IBB) 141 now support
- Retail (XRT) 73.50 now super pivotal-strong above weak below
- iShares iBoxx Hi Yd Cor Bond ETF (HYG) Back to risk on over 78.00