Tuesday, we talked about the Coinbase (NASDAQ:COIN) public listing, and how waiting for the dust to settle would be a good plan as there is no prior price action or history to base projections from a technical standpoint.
The plan turned out to be correct as Coinbase’s initial rally turned into a selloff for most of its trading day.
However, Coinbase will continue to have increased volatility in the coming weeks as a days’ worth of price action does not provide much data for investors and traders to work with.
This means that traders will have to plan with a short-term mindset based on the range of the first day or continue to wait for the chart to develop.
Wednesday was not only a big day for the crypto space, but also for the Russell 2000 (IWM) which initially had a large rally but eked out a close just over its 50-day moving average at $222.84.
With next resistance at $226.69, it will need to clear this level if it wants to get back on track to new highs.
If it does clear $226, it will show improved momentum back over the 50-DMA along with its ability to follow the other major indices including the NASDAQ 100 (QQQ), Dow Jones (DIA), and the S&P 500 (SPY) which all linger around new high territory.
With that said, the QQQs should be watched as today it closed under its prior days low and therefore could be looking for a potential pullback if Wednesday’s move continues into Thursday.
ETF Summary
S&P 500 (SPY) Holding near highs. Support 407.21 the 10-DMA
Russell 2000 (IWM) 219.39 support. Resistance 226.69
Dow (DIA) 333.43 support.
NASDAQ (QQQ) Support 332.32 the 10-DMA
KRE (Regional Banks) Support 65.49.
SMH (Semiconductors) Resistance 258.59.
IYT (Transportation) 257.73 support.
IBB (Biotechnology) 145.69 support.
XRT (Retail) Needs to clear 93 then 96.27. 10-DMA support area.
Volatility Index (VXX) Watching to clear the 10-DMA at 10.57.
Junk Bonds (JNK) support 108.60 the 50-DMA. 109.08 resistance.
LQD (iShs iBoxx $Inv Gd Cor Bd ETF) Doji Day. 131.44 resistance area the 50-DMA.
IYR (Real Estate) Watching the 10-DMA at 93.98 as support area.
XLU (Utilities) 64.50 new support.
GLD (Gold Trust) Gap to fill at 164.14.
SLV (Silver) 23.78 resistance.
VBK (Small Cap Growth ETF) Flirting with the 50-DMA at 282.53.
UGA (US Gas Fund) Cleared resistance at 32.66.
TLT (iShares 20+ Year Treasuries) Watching to hold the 10-DMA at 137.41.
USD (Dollar) Doji day right on the 50-DMA at 91.58.
MJ (Alternative Harvest ETF) Needs to wake up. Resistance 21.55
WEAT (Teucrium Wheat Fund) Needs to hold over 6.30