February 4, 2020
By Mish Schneider
Tonight, we take another long view, only this time, while standing on a galloping horse.
Hence, coming into today we looked at how VXX would do, and how the inside days would resolve, particularly in the market leaders, Semiconductors and NASDAQ 100.
Today that inside day handily reconciled to the upside.
With that said, the indices (DIA and IWM) and the strongest sector (SMH) returned to unconfirmed bullish phases.
Furthermore, the NASDAQ 100 made a new all-time high.
Meanwhile, (IBB, KRE, XRT) all confirmed their caution phases.
How long can our cowgirls keep the ride going?
If you liked the inside days, you’ll love the inside weeks.
Semiconductors SMH is having an inside week. Trading range to break one way or another-145.58-136.96.
Biotechnology had an inside day but is not having an inside week. That can be construed as positive as it took out last week’s high at 117.98. That is support to hold. Plus, watch for this to clear the 50-DMA.
Retail is having an inside week. 45.15-42.90. Granny is still weak.
Transportation IYT is also having an inside week. 197.95-188.93 is the range to break. Note Granny and Tran are in Caution Phases.
Regional Banks, also in a caution phase took out last week’s high. 55.84 is now pivotal
The Russell 2000 IWM is yet another one having an inside week. 165.56-160.03 is the range to clear one way or another.
In order to keep on that galloping horse, these caution phases have to improve, and the inside weekly trading ranges must take out last week’s highs.
If they fall remember that “Even Cowgirls Get the Blues.”
On July 12-13, 2020, I will be speaking/teaching at the Modern Traders Summit in Philadelphia. Only 5 speakers, which means attendees will get a lot of attention, I hope to meet many of you there.
Russell 2000 (IWM) 164.25 must hold
Dow (DIA) 284.80 is the 50-DMA underlying support with 287.62 first line.
Nasdaq (QQQ) Closed on new all-time highs so now, must hold the low 224.65
KRE (Regional Banks) 53.90 the 200 WMA and 54.00 is the 200-DMA. Resistance at 55.85
SMH (Semiconductors) 140.20 key support. Needs to clear 144
IYT (Transportation) Confirmed caution phase. 189.68 support
IBB (Biotechnology) 117.13 support 119.50 resistance
XRT (Retail) 43 support at the 200-DMA and must clear 44.23
Volatility Index (VXX) If clears 15.22 and then 15.44 still worth a look
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