Watch Out When SMH and IYT Agree

June 24, 2019

Mish's Daily

By Mish Schneider


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Gold up, TLT up, UUP down and IMW down.

This is not a good sign for the SPY, QQQ, or DIA which all managed to consolidate rather than trend lower.

The Modern Family is also pointing to weakness as the only member that didn’t trend lower today was SMH.

SMH is consolidating at key resistance and its 50-DMA, so it’s going to move soon.

A surprise would be to the upside, and with that perhaps the family could change its bearish tone.

However, the breakdown in IYT makes this look unlikely.

IYT looks like it wants to lead lower.

If IYT and SMH can agree on the same direction, that’s likely to be the next dominant short-term move.

Bulls should be cautious.

Best wishes for your trading,

Geoff Bysshe
President
MarketGauge

Mish is still recovering from back surgery. Today’s commentary is by Geoff Bysshe, President, MarketGauge.


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S&P 500 (SPY) Until it closes over 295 look out for weakness. Key support areas are 293.50 and 291.50

Russell 2000 (IWM) Back in a Distribution Phase and negative until a close over 155. 151 is the level to hold then 148.50.

Dow (DIA) Holding its high ground. 266 support

Nasdaq (QQQ) 191.32 all-time high. 187 support

KRE (Regional Banks) Lowest close in June. 51.40 support.  Overhead resistance at 53.50

SMH (Semiconductors) 107 now pivotal support. 108.50 the 50-DMA resistance

IYT (Transportation) Bearish breakdown. Must clear 190 to look good. 183 support to hold

IBB (Biotechnology) Weak day closing back under the 200 DMA, but could find support at 106. Needs to clear 110 to be bullish

XRT (Retail) Closed under pivotal 42 level, and 41.00 support

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