Granddad Russell 2000: The Market’s Patriarch

September 26, 2017

Mish's Daily

By Mish Schneider


blankToday, please check out my Facebook Live video and meet Granddad Russell in the flesh!

https://www.facebook.com/mishsmarketminute/videos/1899995570321020/

Over the weekend, I focused on the current star of the market, Russell 2000, IWM our Granddad of the Modern Family.

IWM (Russell 2000) has not excited me this much since June 2015.

That was the second time since March 2014, that IWM hit the top of the monthly channel resistance line. Longer term trend trading makes this super reliable.

Want to see the monthly chart?

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After June 2015, IWM fell 28% until the end of February 2016.

In 2017, IWM has touched the top of the ascending channel line 6 times. In fact, it has for every month except January, May and August.

Simply put, this month, IWM is above the channel line. That means that if IWM closes out September above 144, it will be the first time ever that has happened. BIG!

Just as big, if IWM fails to close this week out over 144, that will look like a channel failure.

S&P 500 (SPY) 248 support to hold. 250 resistance

Russell 2000 (IWM) At the top of the monthly channel, should September end with this below 144, beware. Otherwise, looks explosive and not overbought.

Dow (DIA) Reversal top unless clears 223.95

Nasdaq (QQQ) Confirmed warning phase. If this week closes under 141.85, could see another $10 drop. Over 144 better

KRE (Regional Banks) Unconfirmed Accumulation Phase. 54.50 pivotal-looks good

SMH (Semiconductors) 87.65 the 50 DMA support as this continues to work off its reversal top. Needs to first clear 91.00

IYT (Transportation) New all-time high today. Wow.

IBB (Biotechnology) 327-337 range to break one way or another

XRT (Retail) 41.55 recent highs to clear. Got right there

IYR (Real Estate) See-saw action within a channel going back to February. One day, channel breaks then big move

GLD (Gold Trust) Inside day. 123.90 now pivotal resistance then 122.68 the 50 DMA.

SLV (Silver) Unconfirmed bearish phase.

GDX (Gold Miners) Unconfirmed warning phase-looking at 23.39 pivotal. 22.80 major support

XME (S&P Metals and Mining) over 32.20 better

USO (US Oil Fund) A weekly close over 10.47 good. A monthly close over 10.65-game changer

XLE (Sel Energy Spdr Fd) 68.80 the 200 DMA

OIH (Oil Service Holders) Over 25 now pivotal

TAN (Solar Energy) That High volume reversal pattern should be written down in your journal-I gave you the warning to get out. Now, if 21.00 holds could be the chance to get back in.

TLT (iShares 20+ Year Treasuries) 127 resistance area and 126 support

UUP (Dollar Bull) Unconfirmed recovery phase

FXI (China) 43.25 area the 50 DMA to hold

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