Dogs Walk In Circles Before Lying Down
Besides a baby, we have four dogs staying with us (2 of which are ours). As I was watching the relatively muted action in the market, the dogs slept: the cliché “let sleeping dogs lie” sounds about right to describe the indices as we head into a long weekend.
The Russell 2000 (IWM) posted 3 doji (when the opening and closing prices are virtually the same) days in a row. Doji’s convey indecision or tug-of-war between buyers and sellers. In this standoff, to uphold the current bullish bias, the Russell’s need further confirmation.
As far as the rest of the Economic Modern Family, they stood divided red and green, yet also united, respecting current trading ranges. XRT IYT SMH IBB KRE.
Interest rates reprieved (TLTs) ahead of Janet Yellen’s scheduled statement Friday. That keeps me primarily focused on the seemingly basing action of the metals and soft commodities as well as the Economic Modern Family.
Currently, Ms. Yellen holds the tug toy in a real way. She has hawks and doves both making a case for holding or raising rates (both with valid points no doubt). Then, she’s got the rest of us, lying at her feet, waiting to play.
S&P 500 (SPY) In spite of it all, a new all-time high close Subscribers: Positive Pivots in all except DIA
Russell 2000 (IWM) Support down to 123.75
Dow (DIA) 182.35 nearest support and over 183 again, should bring it to another new high
Nasdaq (QQQ) Nearly to the top-111.16. Support at 109.25
XLF (Financials) Retreat from 2015 highs makes sense ahead of Yellen statement
KRE (Regional Banks) Low volume after 2 days of better than average-seems like its resting but worth watching to see if holds 42.00
SMH (Semiconductors) Over 58.00 better.
IYT (Transportation) Bounce off of support at 152 but not enough to get excited about unless it clears 154
IBB (Biotechnology) Inside day. Doing its job holding us up-therefore if this quits, not good
XRT (Retail) 99.71 the 50 DMA and almost got to the Promised Land
IYR (Real Estate) Broke the 200 DMA-this group is out of favor for now
ITB (US Home Construction) Inside day just under the 50 DMA
GLD (Gold Trust) 115 key support to hold. Inside day. Better over 117
USO (US Oil Fund) Has more work, but did clear 22.00 and the 10 DMA
TAN (Guggenheim Solar Energy) After the huge drop on five times the average volume, Thursday, it rallied back also on good volume
TBT (Ultrashort Lehman 20+ Year Treasuries) Waiting for some decision on rates
UUP (Dollar Bull) 25.20 next point to clear and 24.80 point to hold
EEM (Emerging Markets) Still friendly here
IFN (India Fund Inc.) Cleared the 200 DMA and ran up a bit
EWP (Spain) Good day and move over the 200 DMA
EWW (Mexico) Worth watching this basing action
EWG (Germany) Looks ripe for higher
FXI (China Large Cap Fund) Runaway gap form April 8th. Still holding
DBC (DB Commodity Index) Over 18.50 looks good
PHO (Water) New 2015 highs
