May 12, 2019
By Mish Schneider
Whether intentional or accidental, whoever parked a low rider next to a Miller Lite truck, caused this market metaphor seeker to jump out of her car and snap the photo.
Once again, I am reminded of the market.
Just when you think the market cannot possibly drive that low without destroying the under belly, a switch ignites and sends it bouncing off the lows.
However, although the Russell 2000 managed to hold the bullish phase on the daily, on the weekly chart we see a different picture.
Furthermore, the other members of the economic Modern Family still have to convince me that their low-riding prices have much spring left.
Where does the beer come in?
The wide swings in price intraday, make it seem like the market raided the Miller lite truck.
Looking at the weekly charts, top left is Transportation, IYT.
IYT held 190 or the 50-WMA (blue line). That keeps the sector in play until it closes a week below that area.
Semiconductors SMH, already well above the 50-WMA, Friday, managed to marginally hold the 50-DMA at 110.26.
The Russell 2000, IWM, held the golden cross (or where the 50 DMA cleared above the 200 DMA.) Yet, on the weekly chart, it failed to close above the 50-WMA at 157.04.
Bottom left, Retail XRT closed below the 200-WMA (green). That puts it in a bearish phase on the daily charts, and in a distribution phase on the weekly chart.
Biotechnology IBB, also in a bearish phase on the daily chart, has managed to hold its 200-WMA on the weekly chart thus far.
Regional Banks KRE, is in a recuperation phase on the daily chart. On the weekly chart, it will either break the 54.15 area or clear 56.77, the 50-WMA.
At this point, a spring rain, coupled with unseasonably cold temperatures, cannot prevent this low rider market from attracting buyers.
Could it be the combination of its gaudy paint job and a fuel tank filled with lite beer?
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S&P 500 (SPY) 285.53 the 50-DMA super pivotal with 291 resistance
Russell 2000 (IWM) 157.03 the 50-WMA is the pivotal resistance. With 155.45 next level to hold
Dow (DIA) 260.55 is resistance and 254.22 the 200-DMA support
Nasdaq (QQQ) The 50-DMA support is at 182.42 super pivotal
KRE (Regional Banks) 55.90 the 200 DMA resistance now with 54.20 the next area of support
SMH (Semiconductors) 110.26 the 50-DMA pivotal
IYT (Transportation) Holding the support at 190
IBB (Biotechnology) 105.85 pivotal area with 103.50 support
XRT (Retail) 44.40 key pivotal resistance
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