Friday gave the thrill of a roller coaster ride, as we watched major indices run up and down throughout the day. While it's not the ride most investors look for in the market, it's the best they can get, since most amusement parks have yet to open.
It also looks to stay this way as the United States watches Europe get hit by a second wave of COVID cases. Without a vaccine, this could lead the US to be more wary of lifting restrictions as we head into the close of the year.
Through all this insecurity, the Modern Family continues to hold strong. Five of the members hold a bullish phase, while KRE improved into an accumulation phase on Thursday.
Going to the Modern Family, 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.
Weekly Chart of KRE
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 Grandad (IWM), Transportation (IYT),and Granny Retail (XRT) are digesting their price ranges.
Big Brother (IBB) and Sister 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.
Is the Economy Going To Improve? Mish's picks are playing out on StockCharts TV's Mish's Market Minute. Bitcoin, Food Commodities, Transports and more are all out performing. Be sure to check out the previous week's episode to catch up on where you should be looking in the market.
Real Vision editor, Max Wiethe joins Mish Schneider, to discuss what the remainder of 2020 holds for markets. Schneider revisits her thoughts on stagflation and how that is currently playing out in the markets, as well as the several sectors she has her eye on through the lens of her economic modern family and beyond. She also speculates on how the markets may react to the U.S. presidential election outcome and reveals a stock pick whose future performance may come as a surprise. Watch here: https://rvtv.io/2Tk1Dea
- 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
Mish Schneider
MarketGauge.com
Director of Trading Research and Education
Forrest Crist-Ruiz
MarketGauge.com
Assistant Director of Trading Research and Education
