Mish's Market Minute

Why Tuesday is Pivotal for the Market

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Last Friday, the market closed on a high note, with a rally off the lows of 05/12. This was a bullish sign, yet the rally also pushed prices into a resistance area. The mixed sentiment from traders can be seen in today's major indices, with an inside day pattern found in the Russell 2000 (IWM) and the S&P 500 (SPY).

An inside day pattern is created when the total range of a price candle fits within the prior days' range. This creates an easy way to watch for either a breakout or breakdown, based on resistance/support from the prior day's high/low. However, a clean break over Friday's high brings the market back into a choppy area, while a drop past Friday's lows would have investors looking towards the next key support area to hold from 05/12.

Additionally, the Nasdaq 100 (QQQ) has resistance not only from Friday's highs but also from the 50-day moving average found at $326.84. As seen in the charts above, this gives us key levels to watch for a break over, with a clean support area to hold if bullish sentiment prevails.


Part lesson and part actionable information, Mish takes you through the longer-term moving averages, plus gives you a bunch of long and short picks, in the latest edition of StockCharts TV'sMish's Market Minute.

Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.


ETF Summary

  • S&P 500 (SPY): Held the 10-DMA at 415.25
  • Russell 2000 (IWM): Support 215. Resistance 223.17
  • Dow (DIA): Like this to hold over 342.43
  • Nasdaq (QQQ): 326 resistance
  • KRE (Regional Banks): 71.82 resistance
  • SMH (Semiconductors): 233 pivotal area
  • IYT (Transportation): 282.40 resistance
  • IBB (Biotechnology): 147.11 support
  • XRT (Retail) 96.27 resistance


Forrest Crist-Ruiz

MarketGauge.com

Assistant 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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