Is the Market Action a Case of Definitely Maybe?

June 6, 2019

Mish's Daily

By Mish Schneider


blankDefinitely maybe keeps coming up.

You cannot park here, unless you are inanimate.

A legitimate parking spot?

Definitely maybe.

Definitely maybe the Banks and Federal Reserve will cut interest rates.

Definitely maybe the tariffs on Mexico will go away.

Definitely maybe China will come to the table.

Definitely maybe we are heading into a recession.

Definitely maybe the market will run to new highs.

Definitely maybe the US will wage war with Iran.

And so forth and so on.

What do we do with all these definite maybes?

We came into today focused on both Semiconductors and Transportation.

One closed green, the other red.

Semiconductors SMH, after all was said and done, definitely maybe will go up or down from here.

How can I be so cheeky?

The price action today was an inside day. That means, that the price action traded within yesterday’s trading range.

This means the bulls and the bears are relatively noncommittal.

Transportation IYT, which closed lower than the day before, held a fast moving average. That means IYT found support, but not enough buyers to propel it to close green.

The Russell 2000 closed red as did Regional Banks, brick and mortar Retail and Biotechnology.

In fact, only SMH leans more towards the definite than the maybe.

All in all, we are back looking at an all too familiar scenario.

The Modern Family, except for its warrior sister Semiconductors, are leaning towards the maybe.

The market is mixed, choppy, confused, and waiting for a tangible to sink its teeth into.

Definitely maybe that will resolve tomorrow.

Every Tuesday and Thursday, I will be on KKOB radio at around 6:15 PM mountain time (8:15 PM EST) to discuss markets and market news. www.iheart.com/live/770-kkob-5411/

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S&P 500 (SPY) Until it closes over 295 look out for weakness. Key support areas are 293.50 and 291.50

S&P 500 (SPY) 284.20 pivotal with 286.55 the 50-DMA overhead

Russell 2000 (IWM) 148.40 area support with 151.65 last week’s high resistance

Dow (DIA) Confirmed caution phase with 257 pivotal. 260 overhead resistance

Nasdaq (QQQ) 174.60 pivotal support and 178.95 resistance

KRE (Regional Banks) 51.40 support.  Overhead resistance at 53.50

SMH (Semiconductors) 101.01 pivotal. Resistance overhead at 105

IYT (Transportation) 182.90 pivotal. 185.75 resistance. 180 support

IBB (Biotechnology) Failed the 200-WMA. That makes 103.15 resistance

XRT (Retail) 42.12 the major resistance with now, 40.00 big support

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