June 27, 2019
By Mish Schneider
It was going to be a brilliantly red ball falling into the horizon of the ocean.
But it didn’t.
As the sun set, it became apparent that there was a hidden horizon much higher than the ocean.
Cloud cover in the distance created a sunset that was disappointingly very high in the sky that day.
Not all a bad, but not what I was expecting.
The sun rises in the same way.
And the market’s have analogous hidden horizontal levels from which they rise and fall from unexpected levels.
The Modern Family just demonstrated this over the last few days.
Over the last few days, I’ve focused on the mood of the market as visualized by the charts of the Modern Family.
In the chart below, I have drawn the levels of support/resistance that have all been traded below and then moved above.
Collectively, this is the mood of the market changing from bearish to a new level of bullish.
I wouldn’t say the Modern Family is happy, but I would say that it’s resilient.
And like the sun rising, the trends moving back over these lines sets them, and the market, up for a new day for the bulls.
If they move higher in unison, you may want to give the bulls their chance to enjoy their new day.
These are also the lines you’ll want to pay attention to as important levels as the news flows from the conclusion of the G-20 meeting over the weekend.
Best wishes for your trading,
Mish is still recovering from back surgery so Geoff is filling in temporarily
S&P 500 (SPY) Inside day. Key support areas are 290 and 287.80 which is price level and 50-DMA. Resistance at 292.80.
Russell 2000 (IWM) Nice strong day with a close over 153.50 that show strength. Sitting on the 50-DMA now. 154.50 is resistance, and near-term support at 153 and then 150.50.
Dow (DIA) Weak consolidation day. Until a close over 268 look out for more weakness. 264 may offer support, but the bigger number is 263.
Nasdaq (QQQ) Double inside day with interesting low around 185.50 support. Needs to break over 188 resistance. 183.80 is support and 50-DMA.
KRE (Regional Banks) Nice recovery from 51 support continues. Overhead resistance at 52.50-53.00.
SMH (Semiconductors) Confirmed Bull Phase and looking better, but should clear 110.50 before getting too bullish. Should find support at 107.80 and then 106.80.
IYT (Transportation) Nice up day after an inside day. Needs to 190 to look good. 183.50 is not support then 181.40.
IBB (Biotechnology) Inside day on the 10-DMA. Needs to clear 110 to be bullish, but if it clears 107.50 it looks like an interesting trade with stop under 105.
XRT (Retail) Closed over pivotal 42 level. 41.30 and 41.00 are significant support.
Every day you'll be prepared to trade with: