The double doji pattern in the IWM describes the market well – undecided.
The last two days have been a mirror image of each other in a couple interesting ways. Yesterday the markets ran up in the morning and reversed at key resistance levels. Today they sold off in the morning and held at key support.
Today’s key support levels that held the markets up were the 50 DMA in the SPY and QQQ, and the 10 DMA in the IWM and DIA.
So was that the sell off? The IWM hit all-time highs yesterday and pulled back to the 10 DMA today. It may sound a little short sighted, but in a strong market (like the IWM) sometimes that’s all you get.
I would not trust that the market has had enough rest to resume its up move quite yet, but for the nimble traders whichever way the market breaks relative to today’s range could prove to the next swing’s direction.*
S&P 500 (SPY) Tested support at the 50 DMA then powered back to the pivot midpoint before stopping. Now needs to hold PDL at 208.10 Subscribers: Negative in all.
Russell 2000 (IWM) Tested support at the 10 DMA and rallied back to put in a doji day. 125.05 now support to hold and needs to clear 126.00
Dow (DIA) Held at the 10 DMA as well after breaking its 50 DMA at 179.17, then rallied back to resistance around 180.50.
Nasdaq (QQQ) Held up the market by not breaking its 50 DMA at 106.52. support to watch now is the 50 DMA and 108.20 still resistance.
XLF (Financials) After a rocky start to the day this managed to reclaim 24.30 and hold for the close. 24.26 first line of support now.
KRE (Regional Banks) Gave us an inside day and held 41.06 the 6 month calendar range high. Now needs to clear 41.50.
SMH (Semiconductors) Failed to hold at the 10 and 50 DMA’s but found support at the 100 DMA at 55.13. Now needs top clear back over the 50 DMA at 55.87
IYT (Transportation) Gapped lower this morning under the 200 DMA but came back strong from the lows to reclaim the warning phase.
IBB (Biotechnology) Took a day to digest last week’s move to resistance at 361.94. Would like to see this hold the 10 DMA at 348.20.
XRT (Retail) Trapped in a range between 100 and 102.50.
IYR (Real Estate) Held support at PDL. Still looks weak unless can reclaim 79.02
ITB (US Home Construction) Stopped at the 10 DMA and R1. Still looks strong, especially if can clear 28.50.
GLD (Gold Trust) Tried to get moving again but stopped at the pivot midpoint. Needs to hold today’s lows and clear 115.33 the 50 DMA
USO (US Oil Fund) Key resistance coming up at 19.18 the high from 4/7/2015.
OIH (Oil Services) Over today’s high clears a base of support going back to Dec. 2014.
XLE (Energy) Next major resistance is at 82.00
XOP (Oil and Gas Exploration) Range bound until it can clear 54.21
TAN (Guggenheim Solar Energy) Took a day to rest!
TBT (Ultrashort Lehman 20+ Year Treasuries) Gapperd lower to support from 2/5/2015 and climbed back to the 10 DMA. Needs to hold today’s lows.
UUP (Dollar Bull) Held firmly at the 10 DMA with a hammer doji. 25.92 needs to hold.
EEM (Emerging Markets) Did not confirm a reversal pattern.
EWP (Spain) Inside day
EWW (Mexico) Held well at 59.39 the 100 DMA
EWG (Germany) Inside day on the 10 DMA
EWY (South Korea) Gapped back over the 200 DMA and cleared the 65 weekly MA
CORN (Corn) Over 26.00 gets interesting