Stock Market Feels Like Summer, Looks Like Winter

January 16, 2020

Mish's Daily

By Mish Schneider

blankThe juxtaposition of snow today seems incongruous compared to the hot stock market.

The east coast USA, and in the last couple of days the southwest, have had unseasonably warm days.

The warmer days along with the climbing market felt right.

However today, with another round of new all-time highs, when I stepped outside to snap the photo, I got a chill.

Is there a metaphor here between the wintry weather reminder and the overly complacent bulls in the market?

Last night, the Regional Banks KRE stood as a potential icy tale.

It had failed the 50-DMA for the first time in months. However, we always note that, the phase change needs two days to confirm.

I further stated that, …”unless KRE can close back above 57.05, it probably means it’s selling time again.”

Today, KRE climbed back over the 50-DMA for a now unconfirmed return to a bullish phase.

Again, we need a second day to confirm, which makes Friday key for that sector and quite possibly for the entire market.

If KRE closes confirmed bullish, despite the wintry chill, you keep your Hawaiian shirts on.

A close below 57.08, and bulls should pull out their down coats.

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S&P 500 (SPY) Another new all-time high. 326 support

Russell 2000 (IWM) Made a new January high and now 166 pivotal

Dow (DIA) Made a new all-time high. 288.57 the level to hold

Nasdaq (QQQ) Made a new all-time high and now 218.32 support to hold

KRE (Regional Banks) 57.08 pivotal

SMH (Semiconductors) 143.50 super pivotal Friday

IYT (Transportation) 200 support and reached our first target. If clears 204 could see move to 208

IBB (Biotechnology) 120.25 support

XRT (Retail) 45.50-46.00 pivotal

Volatility Index (VXX) Threw this one in today as a bonus-broke the January seasonal low and then closed back above it. Down coat?

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