December 18, 2017
By Mish Schneider
The weekend Daily ended with, “This week, let Transportation (or to keep with the analogy, the Millennium Falcon) be your Hans Solo and guide you to the next galaxy.”
Furthermore, I stated, “Literally every day, the recent top performer of the Modern Family-Transportation (IYT), has broadcasted the day’s sentiment.”
Monday begins with the bulls flying through space and with Transportation providing the rocket fuel.
So simple, a 3-year old can fly it, right?
Friday’s inside day (when the instrument trades in a range inside the day prior’s range or “pause” day), certainly reconciled investor uncertainty.
Transportation, with strong volume behind it, made another new all-time high.
Granny Retail (XRT) and Big Brother Biotechnology (IBB), also with inside days last Friday, closed mixed today.
XRT soared to new 2017 highs after the clutch hold of the 200-week moving average.
IBB, on the other hand, struggled, failing for the second time to take out 107.50.
As Biotechnology is a sector that attracts the most number of speculators, not surprising IBB would start its holiday season lull a bit early.
Russell 2000 (IWM) had the biggest percentage gain of the 4 indices. However, unlike the other 3, it did not make new highs.
155.41 is the number to clear. If not, we are looking at 150 as the big line to hold.
Sister Semiconductors (SMH) remains stuck in a range between 100-96.50.
Prodigal Son Regional Banks (KRE), similarly to IWM, gained, but sits far enough away from its recent highs at 61.26 to not make too much out of today’s rally.
With 25,000 so close in the Dow, we must consider how a 3-year old manning the controls might react to the many terrifying gremlins we grown-ups see still skulking in space.
S&P 500 (SPY) A runaway gap if confirms
Russell 2000 (IWM) 151.45 pivotal support with 155.41 the all-time high
Dow (DIA) A runaway gap if confirms which means cannot fill the gap to 247.07
Nasdaq (QQQ) A runaway gap if confirms which means cannot fill the gap to 157.82
KRE (Regional Banks) 59.00 pivotal support
SMH (Semiconductors) Range sits between 100-96.50 to break
IYT (Transportation) 187.00 the big underlying support to hold
IBB (Biotechnology) Through 107.50 see 110 at least. Under 105 some trouble.
XRT (Retail) 46.00 substantial resistance with 44.45 pivotal support
GLD (Gold Trust) We will see what this has if it can hold 119.20 area
SLV (Silver) Must fill gap to 15.33
GDX (Gold Miners) 21.60 pivotal with a move over 22.32 better
USO (US Oil Fund) 11.00 support-the longer it holds the more I like it
XOP (Oil & Gas Exploration) Waiting for 35.00 to clear
TAN (Solar Energy) 24.20 now support
TLT (iShares 20+ Year Treasuries) Under 127 can see 125.50
UUP (Dollar Bull) 24.24-24.45 range I am watching to break one way or another
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