Red, White and Ewe

---

When we start to turn our attention towards July 4th fireworks rather than the ones sparked by Greece, it’s time to declare-after jobs report before the open Thursday and maybe say, after the first hour of the trading day-hasta July 6th!

Good signs as we look ahead-The Dow, after huge volume patterns indicating a possible blow off bottom, held the 200 Daily Moving Average. S&P 500 did as well. Granddad Russell 2000 kept above the 50 DMA and like its brethren had huge volume earlier in the week.

Concerning Sectors and Groups, Regional Banks look poised to take out 45.00. Biotechnology is holding its Bullish Phase. Semiconductors defended its 200 DMA.

Better, Retail closed on the 50 DMA so we can now say that one more push above keeps Granny out of the senior center.

Interestingly enough, after writing about volume patterns especially related to Transportation, it posted more than double the average daily volume. That signals a head’s up at least, the bottom is near.

That covers the Modern Family as they get ready to don some red, white and blue, load up the grill, pop open some soft drinks and beer and clink their glasses to toast sheep pastures (trading ranges), and a family that through thick and thin, has kept one another in check.

Here’s to a wonderful holiday!

S&P 500 (SPY) Holding the 200 DMA which of course it has to continue to do. 209.16 fills a gap and if that clears, really good. Otherwise, 205.50 the 200 DMA

Russell 2000 (IWM) 124.00 major support, held the 50 DMA and now over 126.00 a strong finish

Dow (DIA) 176.65 the 200 DMA support to hold and over 178 much better

Nasdaq (QQQ) If the week closes out over 108 good

XLF (Financials) Back to an unconfirmed bullish phase

KRE (Regional Banks) 44.00 area support then 42.85 and back over 45 a much better scenario

SMH (Semiconductors) 55.50 to clear with a hold of 54.50 important for the next direction

IYT (Transportation) Based on volume patterns think this is bottoming out

IBB (Biotechnology) 361 support and over 375 hard to argue with

XRT (Retail) Thought Wednesday key to see if this would hold and it did so far.

IYR (Real Estate) After touching a major monthly chart support point, made a new low then reversed to close on the intraday highs. Would be nice to see this stop falling

XHB (US HomeBuilders) 2 Inside days making this very interesting

GDX (Gold Miners) Super oversold at March lows

USO (US Oil Fund) Noisy until it clears 21.50 or fails 19.00

UNG (US NatGas Fund) Inside day. Like over 13.67

TLT (iShares 20+ Year Treasuries) Acting like there will be a good jobs number and a rate raise-we shall see

UUP (Dollar Bull) Looks strong again

EEM (Emerging Markets) Interesting pattern in some emerging markets in spite of a stronger US dollar

IFN (India Fund Inc.) Like over 27.00

CORN (Corn) Last time this was over the 200 DMA was April 2014-cleared there Tuesday

BAL (Cotton) Great basing action

SGG (Sugar) Trying to base