Mish's Market Minute

How's the Market? Depends on Whose Room You Visit


Artist: Vicky Alexander, Vancouver

To follow up on the daily article featuring the weekly channel in Biotechnology (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 the 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.

Each weekly chart looks different.

Those in the parlor are Biotechnology (IBB) and Semiconductors (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) is struggling 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.

The Russell 2000 (IWM) is struggling 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

Mish Schneider


Director of Trading Research and Education

Mish Schneider
About the author: serves as Director of Trading Education at MarketGauge.com. For nearly 20 years, MarketGauge.com has provided financial information and education to thousands of individuals, as well as to large financial institutions and publications such as Barron’s, Fidelity, ILX Systems, Thomson Reuters and Bank of America. In 2017, MarketWatch, owned by Dow Jones, named Mish one of the top 50 financial people to follow on Twitter. In 2018, Mish was the winner of the Top Stock Pick of the year for RealVision. Learn More
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