August 5, 2020
By Mish Schneider
With the Russell 2000 breaking out over the 50 and 200-week moving averages, the market does look like blue skies, right?
Retail XRT ran to just over $50.00
Sister Semiconductors SMH rocked to another new all-time high.
Transportation IYT passed the critical test at the 200-WMA.
Biotechnology IBB consolidates over the 5-year breakout.
But our Prodigal Son Regional Banks?
Well, perhaps not all is lost
Regional Banks KRE are in a bearish phase.
The sector is having 2 inside weeks.
And that makes it easy.
A move/hold over 38.70 should be followed for a possible run up as shorts are plentiful.
It could also mean that the sector believes there will be a stimulus package passed.
A move/hold below 36.80, and regardless of the lofty prices elsewhere, I would take that as fair warning.
Russell 2000 (IWM) 149 key support and took out June 8th highs.
Dow (DIA) 270 now pivotal
Nasdaq (QQQ) Another low volume day so 270 key
KRE (Regional Banks) See commentary
SMH (Semiconductors) 165-168 pivotal support as it is over an ascending channel
IYT (Transportation) 179-180 now key support
IBB (Biotechnology) 142 resistance 136 support
XRT (Retail) 50.00 now pivotal
Volatility Index (VXX) Inverted hammer doji-that’s a head’s up
Junk Bonds (JNK) 105.30 key support
LQD (iShs iBoxx High yield Bonds) 137.75 support to hold