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Despite Roller Coaster Ride, These Sectors Are Holding Strong

Published 10/25/2020, 03:31 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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Friday gave the thrill of a roller coaster ride, as we watched major indices run up and down throughout the day.

Without a vaccine, this could lead the US to be warier of lifting restrictions as we head into the close of the year.

Through all this insecurity the Modern Family continues to hold strong.

Indices Weekly Charts

Five of the members hold a bullish phase while Regional Banking (NYSE:KRE) improved into an accumulation phase on Thursday.

We can see that the regional banking sector (KRE ETF) has made the largest gain of over 7% since Monday.

This could support the idea of a rotation out of the tech sector and into the financial sector.

KRE Weekly Chart

Being the weakest sector, a comeback through $43 and the 50-week moving averages is a good place to keep watch.

Going to the daily charts we can see that IWM, Transportation IYT, and Retail XRT, are digesting their price ranges.

IBB and Semiconductors SMH on the other hand have come off a little more.

IBB has the 50-DMA as support at $135 with SMH attempting to create support from Thursday and Fridays low around $182.

The markets have put us all through a wild ride, but for at least a small amount of time the Modern Family holds its breath as they wait for the next big piece of news.

S&P 500 (SPY)  Holding range between 10 and 50-DMA. 346 to clear

Russell 2000 (IWM) 155 best underlying support. Resistance at 164

Dow (DIA)  285 Pivotal area with support at 280 the 50-DMA

Nasdaq (QQQ) 290 resistance. Bounced off 280 support the 50-DMA

KRE (Regional Banks) Confirmed Accumulation phase. Watching to clear 50-WMA at $43

SMH (Semiconductors) Holding 184 support.

IYT (Transportation) 200 support 212 to clear

IBB (Biotechnology) Back in a bullish phase, but looks like it could test the 50-DMA again.

XRT (Retail) 52 support thru 55 better

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