Levels & An Interesting Chart

August 8, 2019

Mish's Daily

By Geoff Bysshe

The recent selloff in the SPY was basically 4-down days.

The drop over those 4 days was 6%.

In the chart below, the histogram indicator shows the percent change of the market over 4 days.

If the period was down -6% or greater the bar is red.

As you can see, moves of this speed and size are rare.

Prior to this time frame it occurred in August of 2015 and then in several times in August and September of 2011.

May of 2010, and then quite a few times in the crash of 2008-09.

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ETF Levels:

Subscribers: Positive Pivots in all

S&P 500 (SPY) Support at 291 then Thursday’s low, 289. Big support area is 280 to 277.70 (the 200 DMA). Resistance at 295.

Russell 2000 (IWM) Support at 200 DMA 150 then Thursday’s low, 150. Next big support is 145.30. Resistance at 50 DMA 153.40

Dow (DIA) Support at 262.40 then Thursday’s low, 260.58. Next support levels are 252.50 and 247. Resistance at 50 DMA around 265.

Nasdaq (QQQ) Support at 262.40 then Thursday’s low, 184.57 Swing low is at a trend line from the December 2018 low. Resistance at 190.70.

KRE (Regional Banks) Support around 51. Support at swing low, 49.40 and 49.00. Big resistance at 52, then at 50 DMA, 52.80. Resistance at 52 then 50 DMA around 53.

SMH (Semiconductors) Key support at 111. Resistance at 116.

IYT (Transportation) Back over the 200. Initial Support at 184, then Swing low at 179.20. Big Resistance at 191.

IBB (Biotechnology) Support at 104 which has been pivotal since April. Looks interesting if it can close over 107.

XRT (Retail) Support area at 40.30-40.00. Major resistance around 42.


Bye for now,

Geoff Bysshe

Geoff is filling in for Mish until August 24th.

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