March 3, 2020
By Mish Schneider
With the Federal Reserve’s early announcement of a 50-bps rate cut, the market had another volatile day.
This will hardly be the first time I show you the weekly charts of the Economic Modern Family.
And, it will hardly be the last time.
What strikes me looking at the charts, is that every single one of the Family (Russell 2000 IWM, Transportation IYT, Retail XRT, Semiconductors SMH, Biotechnology IBB and Regional Banks KRE) is having an inside trading week.
Now granted, last week’s trading range as well as the volume was ginormous.
Hence, having an inside week comes as no surprise.
Nevertheless, what helps us at a time when many including myself feel a bit fatigued, is the patience we can muster up to see if the lows of last week hold or not.
Here is a list of last week’s lows for the whole Family.
Take note as these levels are not only key to hold, but also become a reasonable risk if any of these instruments can catch a bid over short-term resistance levels tomorrow.
The Russell 2000-Low 143.91. Also important is the 200-WMA (green) as the week continues.
Transportation-Low 163.89 (175 closest resistance)
Retail- Low 39.76
Semiconductors-124.31. Also note the 50-WMA (blue) just beneath at 123.15
Biotechnology-Low 109.79. Like SMH, the 50-WMA sits at 110.03
Regional Banks-Low is 46.42. This is the first of the Family to enter a weekly Bear Phase.
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Russell 2000 (IWM) 146.84 the 200-WMA and under 144 looking at 140
Dow (DIA) 257.39 has to hold or we see 255 then 250.
Nasdaq (QQQ) 205.50 support to hold with 211.05 resistance
KRE (Regional Banks) This is breaking the 80-month MA for the first time since 2012
SMH (Semiconductors) 132 if breaks, see 128 then 124.75-overhead 139 resistance
IYT (Transportation) 162.50 is the 80-month MA
IBB (Biotechnology) 113 support and 117 resistance
XRT (Retail) Awful earnings out of retail chains-if this loses 38.50 we got bigger troubles
Volatility Index (VXX) Through 25, this has more
Junk Bonds (JNK) 108.53 resistance with under 105 next support at 103.50
Every day you'll be prepared to trade with: