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How’s the Market? Depends On Whose Room You Visit

Published 05/07/2020, 05:22 AM
Updated 07/09/2023, 06:31 AM
IBB
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IWM
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KRE
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XRT
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IYT
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SMH
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To follow up on the Daily featuring the weekly channel in Biotechnology or IBB:

Since this is a weekly chart, what matters most is the weekly close.

That means that intra-week, we can consider price movements, but cannot consider a legitimate channel break up or down until the closing price on Friday.

A weekly close over 128 area would be a good reason to believe new highs are imminent. If that happens, technically, one should follow the price.

As for the rest of the Economic Modern Family, some are in the parlor while others are in the basement.

Indices Weekly Chart

Each weekly chart looks different.

Those in the parlor are Biotechnology IBB and SMH.

SMH has returned (for now) above the bottom trendline. I say for now because she could easily be sent back to her room.

Same with IBB-in the parlor, but as mentioned-until, the week ends, IBB should take heed that the two lion cubs are creating mischief.

As for the rest, Transportation IYT struggles to hold 140, or the midpoint between March lows and May highs.

Retail XRT is doing better, but for how long? And better is a relative term. Our Granny is still well under the breakdown levels.

Regional Banks KRE looks weak under 35.00-there is our prodigal son, heading for the basement.

And the Russell 2000 IWM, struggles to stay in the kitchen as it sits on the lower wedge line thus far.

Moral of the story you do not want a bull in a house full of antiques.

S&P 500 (SPY) 285 pivotal 280 support

Russell 2000 (IWM) 122.40 support 126 pivotal

Dow (DIA) Since could not close over 240 looks vulnerable

Nasdaq (QQQ) We’ve seen this as last man standing a lot-215 support

KRE (Regional Banks) 35 failed so now pivotal

SMH (Semiconductors) 131.75 if fails see 128 next

IYT (Transportation) 143.64 has to clear. 140 support.

IBB (Biotechnology) 128 has to clear on a weekly close

XRT (Retail) 35.00 support 37.50 resistance

Volatility Index (VXX) 40.00 pivotal

Junk Bonds (JNK) 97.70 resistance 96.25 support

LQD (iShs iBoxx High yield Bonds) Broke below the 200-DMA

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