Is the Russell 2000 Worth 2000 Words?

November 19, 2019

Mish's Daily

By Mish Schneider

blankFor weeks now, we have waited for the Russell 2000 IWM to show signs of strength.

With the S&P 500, NASDAQ 100 and the Dow making yet another new all-time high, IWM just looks so tired.

Today, IWM picked up a bit and outperformed the other indices percentagewise.

Perhaps IWM found inspiration from Biotechnology IBB one of his kin, as IBB rose 2%.

Nevertheless, IWM has yet to clear last week’s high at 159.88.

Then, the 11/08 high 160.46 looms over that level as resistance.

Given the weakness in Gramps’ partner, brick and mortar Retail XRT, can we get IWM out of his Laz-Y-Boy chair?

By the end of the session, IWM gave up a lot of its earlier gains.

At the same time, Transportation IYT, did not do very much of anything. However, IYT seems to love the 195 level these days.

XRT got smacked from the impact of poor retail earnings. Yet, XRT remains in a bullish phase.

With Black Friday nearly here, I believe that measure of consumer sentiment will be extremely telling.

Yesterday, I wrote about junk bonds as one indicator to measure investors’ appetite for risk. Today, JNK closed in the red, but not below the support at 107.00.

So, game still on for now.

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S&P 500 (SPY) 309.60 support. All-time high 312.698.

Russell 2000 (IWM) 155-156 Key support. 157.75 Pivotal. 160.46 resistance.

Dow (DIA) A new all-time high at 280.84. 278.00 now nearest support

Nasdaq (QQQ) All-time highs at 203.84. 201.65 support.

KRE (Regional Banks) A move under 55.40 should bring in more selling. 57.52 next resistance to clear

SMH (Semiconductors) 135.26 all-time high. Breakaway gap intact if holds 130. Interim support at 133.25

IYT (Transportation) 195 pivotal 194 some support and must clear 200.42

IBB (Biotechnology) 108.75 support. 115 major resistance

XRT (Retail) 42.95-43.05 key support

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