July 17, 2017
By Mish Schneider
Perhaps you came to the market this morning all dressed up and rearing to go.
By the end of the session, ahead of earnings on many significant stocks (NFLX numero uno), you might have left like this bulldog of the dead.
Last week, the market ended poised for something big and bigger.
The Dow, S&P 500 and the Transportation Sector made new all-time highs.
Instead of a woof though, the market began with a whimper.
Both the Dow and the S&P 500 had quiet trading ranges inside the more broader range we saw Friday.
If you are like me, you are anticipating a dramatic start of a new leg up. Or evidence of a dramatic finish.
Instead, the market gave us skeletal bulldogs.
The Russell 2000, of the four indices, had the best performance.
We wait for IWM to either gap up above 143 and not look back.
Or gap lower and break under 138.00
Biotechnology (IBB) traded right into resistance. At the end of the session, IBB failed to take out 320 yet held well above critical support.
Regional Banks, after the soft revs in big banks, gained back a smidgeon.
Resuscitation (Annie) Granny Retail (XRT) turned out the star of the Family.
XRT cleared and held 40.00. However, hurdles exist to get Granny back into a Recovery Phase.
The Transportation ETF (IYT) closed red. It can still open above 175.75 and run. Or, sellers could come out and take IYT down to 172.
In between support and resistance, your P&L can wind up in the bulldog’s sizeable fangs.
We do not want to see you lament, “My bulldog ate my profits.”
***On another note, please join my member only Facebook page: Mish’s Market Minute Daily. Beginning this Wednesday July 19th at 5 EST, I will be there live with the debut of the Modern Family cartoons and much more!
S&P 500 (SPY) 245 now pivotal. Since inside day at new all-time highs, would take a runaway gap here.
Russell 2000 (IWM) I’d still consider the channel resistance at 142.90 as the number to watch. A gap and run above-sweet! 140 pivotal. 138.00 support
Dow (DIA) 214 pivotal support. Quiet inside day.
Nasdaq (QQQ) 142 pivotal. Over 144, blast off.
KRE (Regional Banks) Must hold 54.10 clear 56.50 once and for all
SMH (Semiconductors) Closed just under 86.68 pivotal area. Must clear and hold
IYT (Transportation) New highs so best bet for a runaway gap higher
IBB (Biotechnology) Must clear 320
XRT (Retail) 40.00 important pivotal area. 40.77 the 50 DMA
IYR (Real Estate) After three waves lower, should this clear back over 81.50 BUY!
GLD (Gold Trust) 116 pivotal and 117.55 a better place to clear
SLV (Silver) 15.20 very tight nearby risk for this to move higher
GDX (Gold Miners) Has to clear 22.75
USO (US Oil Fund) If this clears 9.65 way better
TLT (iShares 20+ Year Treasuries) 124-125 resistance. 122.40 support
VXX (Volatility Index) No drama no fear
UUP (Dollar Bull) More interesting, FXE made new yearly highs
FXI (China) Inside day near yearly highs