March 28, 2019
By Mish Schneider
Last night we focused on Granny Retail XRT, and a pattern we have not seen in a while-when Granny Retail takes the lead.
Plus, right on cue, when XRT takes her cane and heads to the mall, she finds herself a willing driver-
Today, XRT confirmed the bullish phase and IYT went into an unconfirmed Recuperation phase.
Granny Retail is so proud of herself for stopping the sell off and potentially starting a rally, she no longer sees an old lady in the mirror.
No, her reflection is that of a beautiful princess in a hot pink ballgown!
Yet, will her reflection remain like that of a beautiful princess or will it get real, like Snow White’s Evil Queen’s true reflection did?
The daily chart on the left, Transportation IYT shows that it cleared the 50-DMA today when it rose above 184.36.
As this is the first day only, we wait one more day for confirmation or a second close above the 50-DMA.
On the right is Retail XRT.
Although XRT only marginally cleared the 50-DMA yesterday, today it confirmed the Recuperation phase.
With Russell 2000 IWM also clearing its 50-DMA, question is can IWM, like IYT, confirm a second day?
Semiconductors SMH remain red.
Biotechnology IBB is stuck in a bearish phase and Regional Banks KRE, although rallied, is still bearish as well.
Granny is sure trying to band the Family together.
And should IYT and IWM manage to confirm, looks like Granny can keep on her hot-pink colored glasses for now.
S&P 500 (SPY) Want to at least see a close over 281.20 the 10 DMA
Russell 2000 (IWM) Can this confirm the recuperation phase by closing the week out over 152.25? That will be a good start but still lots of overhead resistance
Dow (DIA) 257.27 the resistance at the 10-DMA and support at the 50-DMA or 254.33
Nasdaq (QQQ) Inside day with 179.02 is the 10-DMA resistance to clear. Under 177.90 some trouble
KRE (Regional Banks) 50.95 is the 200-week moving average and pivotal if it can manage that level by the end of the week.
SMH (Semiconductors) I’d still like to see a flush down to 100-101, but if it clears 106.35 and sticks, could halt the flush temporarily.
IYT (Transportation) Unconfirmed recuperation phase if holds 184.37 on a closing basis.
IBB (Biotechnology) 110.32 the number to clear and close above
XRT (Retail) Confirmed Recuperation Phase. 45.50 resistance and 44.65 area the support
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