Battle of the Elders: Grandpa Russell 2000 V. Granny Retail

May 22, 2023

Mish's Daily

By Mish Schneider


Just look at the March lows in Granddad Russell 2000 (IWM).

Now look at the March lows in Granny Retail (XRT).

So who is right?

IWM has moved up for the March lows and to start the week, took the lead.

IWM cleared the 50-DMA in price now in recuperation phase.

Real Motion-our proprietary indicator that lets you see hidden strength or weakness during market trends-right now is as interesting as the diversion in price between Gramps and Granny.

IWM’s momentum indicator cleared the 50 and 200-DMAs changing phase to accumulation.

That is a bullish diversion for IWM as the price is still under the 200-DMA.

Granny XRT on the other hand, shows momentum declining and below both moving averages.

However, could be a mean reversion forming. Or at least we hope so.

Granny’s price sits at the March lows and at the 6-month calendar range low.

She must get game, or I would assume like her grandson Regional Banks KRE-she is flashing a huge warning.

 

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Mish in the Media -
All clips here

TD Ameritrade 05-22-23

Daily Briefing Real Vision 05-19-23

CMC Markets Currencies, oil, gas and lithium 05-17-23

Business First AM Retail 05-16-23

CMC Markets Currencies and Commodities 05-10-23

Business First Am GME 05-10-23

Making Money with Charles Payne Fox Business 05-10-23

Business First AM 05-09-23

Daily Briefing Real Vision 05-09-23

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Coming Up:

May 23, 25 Mario Nawfal Twitter Space

May 25 Wolf Financial Twitter Spaces

May 31st Singapore Radio with Kai Ting 6:05 PM ET MoneyFM 89.3

June 2nd Yahoo Finance

 

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ETF Summary

S&P 500 (SPY) 23-month MA 420 Support 415

Russell 2000 (IWM) 170 support - 180 resistance

Dow (DIA) 336 the 23-month MA

Nasdaq (QQQ) 336 cleared or the 23-month MA-now its all about staying above

Regional banks (KRE) 42 now pivotal resistance-37 support

Semiconductors (SMH) 23-month MA at 124 now more in the rear-view mirror

Transportation (IYT) 202-240 biggest range to watch

Biotechnology (IBB) 121-135 range to watch from monthly charts

Retail (XRT) This could be the new harbinger like KRE was in March. Poor Granny

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