Right Round Like A Record, Baby; Right Round Round Round

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Lyrics by Dead or Alive

We left last week with our Modern Family stuck in gridlock. I begin this week sounding like a broken record.

Let me “spin” that-I begin this week singing a familiar tune that has spent the last 5 months at the top of the Billboard Charts-Ewe Keep Me Hanging On!

Trading range (sheep pasture) stubbornly continues now into its 6th month. The Russell 2000s found some stride clearing back over the 50 DMA while Grandma Retail began the week unmoved closing flat on the day. Semiconductors and Biotechnology took a breather and Regional Banks whipsawed a bit, ultimately closing in relatively good shape.

Who was the star of the family? Transportation. After ditching the minivan wondering if she was a good sheep or a bad sheep, Monday, she hesitantly climbed back in offering, “Okay, let’s go; but, I’ll hang out under one condition-if Granddad Russell puts pedal to the medal.

All in all, the one that keeps our ewes hanging on is the Federal Reserve. There is plenty of daily trading activity in specific equities for good stock pickers, but the macro picture hangs in the balance until the Fed shows its hand on the next direction of rates.

S&P 500 (SPY) Again failed to clear the fast moving average even with the stronger open. 212.41 now resistance to clear and 209.90 the 50 DMA to hold.

Russell 2000 (IWM) Now back to unconfirmed Bullish phase. Has to hold 124.26 the 50 DMA or will see yet another test of 122.

Dow (DIA) Inside day on the 50 DMA. 180.02 now the support to hold and 181.71 the fast moving average to clear.

Nasdaq (QQQ) Double top possible at 111.08-16 and support to hold now at 108

XLF (Financials) Inside day, 24.42 support at the 50 DMA with 24.90 the point to clear

KRE (Regional Banks) And back to sheep, trading ranges and modern family

SMH (Semiconductors) New high then turned to close slightly red but not enough to think top

IYT (Transportation) Possible reversal especially if it can get back over the 151.60 level.

XRT (Retail) Over 99 will look better, under 97.00 trouble

IYR (Real Estate) Not dismissing this as a good base if can clear over 76.45

ITB (US Home Construction) Inside day under the 100 DMA

GLD (Gold Trust) Over 115 better if holds 114

USO (US Oil Fund) Over 20.50 looks better after an inside day.

TLT (iShares 20+ Year Treasuries) Retreated from 124 last week and now will see if it can hold 120.00 level

UUP (Dollar Bull) Stronger Monday and holding around the 50 DMA

EWI (Italy) Exited a long and now watching for a new one if it holds 15.30

CORN (Corn) Trying hard to hold after making a new 60+ day low

SGG (Sugar) Holding the March lows so far