WIth the SPY, QQQ, DIA, and IWM closing down on the day, now it's a good time to check the health of the Modern Family to give us a bigger picture of the market.
Above, you can see the weekly charts for Modern Family (IWM, IYT, XRT, KRE, IBB, SMH), all keys to the larger picture.
Let's begin with Grandpa Russell (IWM) showing us the small cap stocks. A second touch and pullback from the 200-WMA gives a clear support level of 149, with the 50-WMA close behind.
Last week, Transportation (IYT) came 3 cents away from the high of January 17th - 203.89. We are currently having an inside week. This could give it the consolidation to push through that clear resistance level. Support from the rest of family and the government would be key.
Granny Retail (XRT) is also having an inside week. Unemployment benefits are still under negotiation, which could play a large supporting factor for Granny, who has paused for the time being.
Prodigal Son Regional Banks (KRE) has yet to pull closer to any of the moving averages, being the weakest of the bunch.
Big Brother Biotech (IBB) is currently sitting close to major support at 124. That is the 50-WMA with which its rising slope could meet IBB's price.
Sister Semiconductors (SMH) has been through a great run, but without any major support nearby and last week's high being at 184, she will need to pull things together to make another move higher. She's also not in an inside week, which means holding above last week's low of 165.50 could be a very important level.
Waiting for the confirmation of good news with an end to stimulus negotiations could be a key here. IYT, IBB and XRT are having inside weeks. IWM is sitting on major support while SMH is holding over last week's low. Besides KRE, everyone else is hanging in there.
Mish appeared on Yahoo Finance's "The Ticker" today to discuss jobless claims. Watch here!
- S&P 500 (SPY): 332.88 support
- Russell 2000 (IWM): Next support 149. Watching for confirmation under 50-DMA
- Dow (DIA): 284 resistance, 272.40 support
- Nasdaq (QQQ): Sitting on 50-DMA as support. Watching for a bounce or break with resistance at 287
- KRE (Regional Banks): Confirmed bearish phase
- SMH (Semiconductors): Watching for second confirm of a caution phase
- IYT (Transportation): 194.67 support with 200 pivotal
- IBB (Biotechnology): 125-130 range to break
- XRT (Retail): 50.00 key support, 52 resistance
- Volatility Index (VXX): VIX holding better than VXX - watch VIX at 28.00 and, if can clear back over 30.50, trouble
- Junk Bonds (JNK): 104.50 support, 105.40 resistance
- LQD (iShs iBoxx High-Yield Bonds): Starting to look vulnerable under 134.56 - that would yield caution
Assistant Director of Trading Research and Education