January 30, 2020
By Mish Schneider
We stopped so I could take a photo, but also so we could ponder what wild animals should we be on the lookout for.
To the question “Was that the V-bottom (in the Russell 2000 IWM) we have enjoyed throughout most corrections, or a bear flag and the start of much nastier downturn coming soon?”
The answer is not sure yet.
Last night we looked at the weekly charts on the economic Modern Family.
We saw the critical support that must hold.
Weekly charts often give you the chance to step back and look at a bigger picture.
Retail XRT for example, fell right to its 50 and 200-week moving averages and thus far, held.
We all slowed down our buying, and now we wait to see if wild bears cross the road.
With tomorrow the end of the month, we should know more about the next major direction of the market.
Looking at the Daily chart of the Russell 2000 IWM, speaking of bears, the bear flag did indeed break.
The measured move of the break puts IWM at around 160.
Yet, IWM does not act alone.
Granny Retail XRT held the weekly MAs, as did Regional Banks KRE and Transportation IYT.
If IWM holds 162 and returns back above the 50-Daily Moving Average or 164.01, then put the car in drive and proceed with caution.
Today we saw that bulls can be just as wild as bears.
Yet, should Retail, Transportation or Regional Banks break below the support or the lows they had today, then make a U-turn as to not get into a scrap with any wild bears.
I'm happy to announce that my book, "Plant Your Money Tree: A Guide to Growing Your Wealth", made it to BookAuthority's Best Wealth Books of All Time:
BookAuthority collects and ranks the best books in the world, and it is a great honor to get this kind of recognition. Thank you for all your support!
The book is available for purchase on Amazon.
S&P 500 (SPY) A weekly close under 320 will not look healthy. 329.50 resistance
Russell 2000 (IWM) Support 162 to hold then must clear 163.80-164.07
Dow (DIA) 284.12 is the 50-DMA with 290.35 resistance
Nasdaq (QQQ) 212.24 support with 222.70 resistance
KRE (Regional Banks) 54.00 is the 200-DMA. 57.00 resistance
SMH (Semiconductors) Major support 139.77. 145.40 resistance
IYT (Transportation) 190 next support. 195.50 pivotal
IBB (Biotechnology) 115.40 support 119 resistance
XRT (Retail) 43 support and 45.00 resistance
Volatility Index (VXX) One day wonder
Every day you'll be prepared to trade with: