May 29, 2019
By Mish Schneider
We recently saw this piece in a gallery.
As the big cats cling to the precarious mast to avoid the hungry alligators below, the entire boat is in peril.
I cannot imagine a much better metaphor for the current market conditions.
Who are the market’s big cats?
So, who are the alligators?
The word sovereign (as in the title of the painting) means supreme power.
To me, the takeaway is that even supreme power can be ephemeral.
Nothing or nobody is immune to encountering conditons beyond their control.
Such are the cliffs that pop up unexpectedly.
You know, the cliffs that catch you off guard when you do not have an effective rudder.
Every Tuesday and Thursday, I will be on KKOB radio at around 6:15 PM mountain time (8:15 PM EST) to discuss markets and market news. www.iheart.com/live/770-kkob-5411/
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S&P 500 (SPY) 277 or where the MAs sit essentially held for today. Now, it must show us it can at least get back over 280.Subscribers: Negative Pivots in all
Russell 2000 (IWM) Would have preferred to see this close over 148.41 the March low. At least it bounced from today’s low at 147.36. 150 pivotal now
Dow (DIA) This failed 253.44 is the 50-week MA. The Dow is the second but not the last index to break that level. Now 253.44 is the place to clear
Nasdaq (QQQ) Held 174.40-174.60 the underlying MAs. So if there is going to be any pockets of strength, it will be in this index, especially if it can clear 177.50
KRE (Regional Banks) Wild day here. Broke the 200-WMA at 51.40 to come back strong and close green. Worth watching.
SMH (Semiconductors) 101.15 the 200-DMA resistance to clear if good
IYT (Transportation) The 180 support became resistance. Now must clear and hold if good.
IBB (Biotechnology) Broke the 200-WMA at 103.14. Did hold 101-so there is the range to watch
XRT (Retail) Support around 40.00 held with today’s low 40.07
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