September 10, 2020
By Mish Schneider
Written by Forrest Crist-Ruiz
WIth the SPY, QQQ, DIA, and IWM, closing down on the day, now it’s a good time to check the health of the Modern Family to give us a bigger picture of the market.
Above you can see the weekly charts for Modern Family. (IWM, IYT, XRT, KRE, IBB, SMH) All keys to the larger picture.
Let’s begin with Grandpa Russel (IWM) showing us the small cap stocks.
A second touch and pullback from the 200-WMA gives a clear support level of 149 with the 50-WMA close behind.
Last week (IYT) Transportation came 3 cents away from the high of Jan 17th. 203.89. We are currently having an inside week. This could give it the consolidation to push through that clear resistance level. Support from the rest of family and the government would be key.
(XRT) Granny Retail is also having an inside week. Unemployment benefits are still under negotiation which could play a large supporting factor for Granny retail who has paused for the time being.
(KRE) Prodigal Son Regional Banks has yet to pull closer to any of the moving averages being the weakest of the bunch.
(IBB) Big Brother Biotech Is currently sitting close to major support at 124. That is the 50-WMA which with its rising slope could meet IBBs price.
(SMH) Sister Semiconductors has been through a great run, but without any major support nearby and last weeks high being at 184, she will need to pull things together to make another move higher. She's also not in an inside week, which means holding above last weeks low of 165.50 could be a very important level.
Waiting for the confirmation of good news with an end to stimulus negotiations could be a key here. IYT, IBB and XRT are having inside weeks. IWM is sitting on major support while SMH is holding over last week's low. Besides KRE, everyone else is hanging in there.
Russell 2000 (IWM) Next Support 149. Watching for confirm under 50-DMA
Dow (DIA) 284 resistance 272.40 Support
Nasdaq (QQQ) Sitting on 50-DMA as support. Watching for a bounce or break with resistance at 287
KRE (Regional Banks) Confirmed bearish phase
SMH (Semiconductors) Watching for second confirm of a caution phase
IYT (Transportation) 194.67 support with 200 pivotal
IBB (Biotechnology) 125-130 range to break
XRT (Retail) 50.00 key support. 52 resistance
Volatility Index (VXX) VIX holding better than VXX-watch VIX at 28.00 and if can clear back over 30.50 trouble
Junk Bonds (JNK) 104.50 support 105.40 resistance
LQD (iShs iBoxx High yield Bonds) Starting to look vulnerable under 134.56-that would yield caution
GLD (Gold Trust) Needs to clear over 10-DMA
GDX (Gold Miners) We are in see notes
SLV (Silver) 25.50 and above looks strong support 24.05
USO (US Oil Fund) Did not hold 27. Watching for move to 26.27 low
TLT (iShares 20+ Year Treasuries) Needs to hold 10-DMA
USD (Dollar) Needs to hold 50-DMA
VNM (Vietnam) Broke 15 and needs to clear 10-DMA again.
CANE (Sugar) 5.75 Support
Soybeans (SOYB) Still looking good
DBA (Agriculture) Needs to hold the 10-DMA