11-11 and the Modern Family Begins with an Inside Week

November 11, 2019

Mish's Daily

By Mish Schneider

blankWith Veteran’s Day and a bank holiday, the general market action was quiet.

Therefore, no surprise that 11-11, a number that has historically made people shudder, today kept the market firm and inside the trading action of last week.

Every economic Modern Family member held last week’s gains.

Despite the red close in all indices except the DIA, the action (or non-action), looks positive.

Furthermore, the Russell 2000 IWM did have a golden cross hence entered an unconfirmed bullish phase.

Unusual for me to look at the weekly charts on a Monday, I thought today the inside week setup makes the rest of the week relatively easy to discern.

Focusing on IWM, the price action range of last week was 157.81-160.46.

With today’s close in the lower 1/3 of last week’s range, IWM is a great barometer for the tone this week.

A move under 157.81 that cannot recover, means more selling is in store for the overall market.

The same is true for brick and mortar retail XRT. 43.99-45.41 was its last week range.

Today’s closing price was pretty much in the middle of that range.

I’d watch where XRT winds up as well.

As for the other sectors, they also traded within the range of last week, but more in the middle to upper levels of that range.

Overall, remember that the Russell 2000 IWM still needs to clear the April highs.

For Retail XRT, the April highs are still far away.

But for now, we can finetune our watch to which way last week’s range ultimately breaks.

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S&P 500 (SPY) 306.35 support. All-time high 309.65.

Russell 2000 (IWM) 155-156 Key support 158 pivotal 161.11 resistance.

Dow (DIA) Made a new all-time high at 278.05 last week. 275 now nearest support

Nasdaq (QQQ) Inside day and week. All-time highs at 201.72. 199.20 support.

KRE (Regional Banks) 55.74 July high now pivotal support 57.52 next resistance

SMH (Semiconductors) 134.28 all-time high. Breakaway gap intact if holds 130

IYT (Transportation) 195 support and must clear 201.48

IBB (Biotechnology) 110.93 the July high which this could not get to. 107 nearest support

XRT (Retail) 44 now the pivotal support. 45.68 May high.

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