June 3, 2019
By Mish Schneider
The Federal Reserve, trying to play the Cupid who shoots golden arrows, hinted today that an interest rate cut could be warranted.
However, those same rate cuts, coupled with an investigation into practices by Amazon, Google, Apple and Facebook, could play out as the Cupid who shoots leaden arrows.
That makes us wonder which arrow Cupid’s got up his wing.
Over the weekend, I showed you the weekly charts of the Economic Modern Family.
We particularly observed that Semiconductors SMH remains the strongest of the weakest. We noted that SMH is below the 50-WMA, but not by that much.
Furthermore, unless SMH can close this week back over the 50-WMA at 101.72, we advise that selling rallies makes sense.
At the same time, I showed you weekly charts of many soft and agricultural commodities.
Today, with gold as the strongest, the ags and softs were mixed.
Noteworthy, is that the dollar declined while sugar futures climbed.
Back in January, I pointed out that besides gold, sugar is often a reliable inflation indicator.
Henceforth, with the equities market struggling to catch a rally and certain commodities flying to highs not seen since early March, is our market’s Cupid romantic or mischievous?
Every Tuesday and Thursday, I will be on KKOB radio at around 6:15 PM mountain time (8:15 PM EST) to discuss markets and market news. www.iheart.com/live/770-kkob-5411/
S&P 500 (SPY) 277 resistance to clear. Confirmed Distribution phase-next support area 271.50.
Russell 2000 (IWM) Support around 145. Better at 138. And resistance at 148.40
Dow (DIA) 250 pivotal
Nasdaq (QQQ) Confirmed Distribution phase 167.45 support. Over 174.54 could give it a bounce
KRE (Regional Banks) 49.00 some support with 51.40 the big overhead resistance
SMH (Semiconductors) 101.07 the 200-DMA resistance to clear but better if it clears 101.72 the 50-WMA. Support at 97.61, this past week’s low
IYT (Transportation) 178 resistance with 167.50 the best support
IBB (Biotechnology) Some news boosted this above 100. However, the move today was not enough for a bonafide reversal pattern
XRT (Retail) 40.00 held -perhaps due for a dead cat bounce.
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