April 3, 2019
By Mish Schneider
Meow Wolf, Santa Fe
“Grandchildren are at once, emblematic of your immortality and a constant reminder of your own finiteness.”
A perfect description of today’s action and what, if IWM could talk, he might say.
The day began with a gap higher, taking all indices except for IWM to a new swing high.
Transportation IYT also began the day with a new swing high.
IWM began with a sense of immortality also gapping up on the open.
However, IYTs selloff became the reminder of IWM’s finiteness, therefore Gramps also slipped further away from its highs of the day.
Even before IYT started to slip, IWM could not get enough power to run up to its 200 daily moving average at 156.66.
So, what is it Grampa-
Immortality or Finiteness?
IYT made a new swing high today 193.59. It then closed near its intraday low.
That means that tomorrow is again key. A close under today’s low at 190.99 will be considered yet another topping reversal.
If IYT holds today’s lows, over 192.15, IYT regains the floor trader’s midpoint, important for intraday strength.
The Russell’s really need to clear the 200-DMA at 156.66.
Then by Friday, it needs to clear the 50-WMA at 157.10. Hurdles remain.
Furthermore, should IYT fail today’s lows, IWM has to hold 154.50, or we are looking at a test of the underlying 10 and 50-DMAs at 152.75.
A friend asked me today what I thought of the market.
I said that a bubble will come at some point, but for now, enjoy the party.
Granddad Russell 2000 has the power to keep the party going into the night or sound the fire alarm and clear the room.
S&P 500 (SPY) New swing high today at 287.76. Now we watch 285.75 today’s low to hold or not
Russell 2000 (IWM) 154.40 pivotal support and 156.70 area the place to clear
Dow (DIA) New swing high today at 262.72. Now we watch 261 to hold or not
Nasdaq (QQQ) New high today at 184.92-now we watch today’s low 183.21 to hold or not
KRE (Regional Banks) 53.40 resistance on a closing basis still relevant. Like to see 52.70 hold
SMH (Semiconductors) 110.60 now pivotal support with 114.55 the all-time high
IYT (Transportation) 191.40 the immediate pivotal area. Under 190.99 could see a quick drop to 189.10
IBB (Biotechnology) All things considered, this is lagging behind. 115 key resistance and must hold 111.20 area
XRT (Retail) 45.50 resistance and 44.50 key support
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