Stock Market Levels and Follow-Up

January 14, 2020

Mish's Daily

By Mish Schneider

blankLast night we talked about Breakdancing and its four kinds of movement: toprock, downrock, power moves and freezes.

We thought that Regional Banks KRE could toprock or continue dancing from its upright position.

We thought that brick and mortar XRT could downrock, or start from the floor and dance its way upright.

We thought Transportation IYT could power move, gaining both speed and momentum.

And we thought that Biotechnology IBB could freeze or halt from selling off, but also continue to trade as if frozen at current levels.

How did that all work out for Tuesday January 14th?

JP Morgan reported well before the open. That gave KRE, our Regional Banks a toprock-type move up, but only marginally so. With lots more banks reporting, KRE remains on watch.

Retail XRT did move from her downrock position. It danced right into resistance, so again, remains on watch.

Transportation or IYT was the power mover or star of the breakdancing Economic Modern Family.

With Amazon lifting the ban on FedEx as a carrier for their deliveries, IYT power moved over 200. Now, it has to hold right around there to remain a star.

Biotechnology sort of did the freeze step. Although IBB rose even more than IYT did, IBB also has resistance to clear over 122.

Wednesday and Thursday will be exciting to watch unfold. With the Phase One deal on tap, along with the seasonal calendar about to change, here are the breakbeat key levels….

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S&P 500 (SPY) Inside day after the new all-time high. 324.77 support

Russell 2000 (IWM) 165.50 pivotal

Dow (DIA) Made a new all-time high. 287.64 the level to hold

Nasdaq (QQQ) Made a new all-time high. 217.00 support to hold

KRE (Regional Banks) Holding the 50 DMA right around 57.00-needs to clear 57.75

SMH (Semiconductors) New all-time high 143.31 support to hold

IYT (Transportation) 198.50 pivotal support

IBB (Biotechnology) 121.91 resistance and 115.50 support

XRT (Retail) 45.50-46.00 pivotal resistance. 44.80 the 50-DMA

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