Since the pandemic, the market has risen on stimulus. Then, the market bulls turned to vaccine news and hopes for a quick and effective release. Most recently, the market has a new guardian - a transition team taking shape with the market's favorite dove Janet Yellen as Treasury Secretary. Furthermore, it appears she will work with Powell as it's rumored he will remain the Fed Chair.
Can the market get any more good news?
This does seem to bode super well for our Economic Modern Family. The Russell 2000 (IWM), Transportation (IYT), Retail (XRT) and Semiconductors (SMH) have all cleared and gone on to make all-time highs more than once.
It's possible the Modern Family has been listening a bit too much to the Blue Swede's "Hooked on a Feeling" (as made famous a few years ago in Guardians of the Galaxy).
Lyrics:
I'm hooked on a feeling
I'm high on believing
That you're in love with me!
The market has definitely been hooked on a euphoric feeling, as today the Dow Jones broke 30,000. Then, pot stocks, like CGC, GRWG and MJ also gapped up, which proves the market is "high on believing."
But one must be careful with the last sentence - "That you're in love with me!"
While it's pleasant to think that the market loves you, you should be very wary in believing it. The market can easily retract such feelings, leaving you in a daze!
- S&P 500 (SPY): Needs to clear 364.38
- Russell 2000 (IWM): New all time highs! Support the 10-DMA at 176.80
- Dow (DIA): Broke 300! Needs to hold and create support here
- Nasdaq (QQQ): 300 key to clear with major support; the 50-DMA at 282.18
- KRE (Regional Banks): 52.79 200-week moving average to clear next. Support at 48.14
- SMH (Semiconductors): Support 196.60; needs to hold over 200.
- IYT (Transportation): All time highs! Support 215
- IBB (Biotechnology): 137.14 support the 50-DMA and 143.36 resistance.
- XRT (Retail): New all time highs; 56.72 support.
Mish Schneider
MarketGauge.com
Director of Trading Research and Education
Forrest Crist-Ruiz
MarketGauge.com
Assistant Director of Trading Research and Education
