How many can say they have been kissed by a pig?
Hammy and I started our love affair in February when he became our mascot for the Chinese New Year of the Pig.
This year, since the element is water, Raymond Lo, an astrologist whom I have followed for years, predicts the stock market will have many issues.
He goes on to say that those issues will remain until the return of fire starting in 2022.
In February, Hammy told me that when he gets his spring bath, the market would sell off.
On March 21st, like clockwork, the market did indeed sell off.
However, the selloff did not last very long. The Russell 2000 (IWM) fell from 156.06 down to 148.41 in a matter of days.
Turns out though, Hammy did not get a bath at that point.
The winter lasted way longer than usual, and it was too cold to bathe him.
So, this past weekend, with temps in the mid-60’s, Hammy finally got that bath.
During the long winter, we saw the market turn around on March 25th, with the S&P 500 making a new swing high.
The Russell 2000 reached a high of 157.47 last Friday.
Now that Hammy took the plunge, does that mean the highs are in?
Over the weekend, we looked at the weekly charts in the economic Modern Family.
Today, let’s focus solely on the Russell 2000 IWM.
This is the weekly chart of the Russell 2000 IWM.
Note that on Friday, IWM cleared the 50-WMA (blue line).
Today, IWM closed just below it. (That level is 157.19).
Several weeks ago, IWM had also cleared the 50-WMA for two weeks and then failed it the week the spring equinox hit.
The market has lines to cross to help it live and lines to fail, which will force it to die.
157.19 is such a line.
The week is young.
Yet now that spring is here, and Hammy finally did get that bath, will the water element deluge the market and the recent rally?
With some patience, that answer will reveal itself very soon.
To watch the Hammy video click here
S&P 500 (SPY) – New Swing high at 288.91. Finally, in overbought territory. 287.37 first support then 285.
Russell 2000 (IWM) – Confirmed accumulation phase. 156 important to hold and close above. 159.50 the swing high in early March resistance.
Dow (DIA) – New swing high at 264.84. Closed Under 263.61 because of Boeing, which could be start of more selling.
Nasdaq (QQQ) – Swing high 185.28- Watch 183.63 to hold now.
KRE (Regional Banks) – 53.40 now support and 54.25 the 50 DMA to clear.
SMH (Semiconductors) – New swing high at 112.89 which makes 111.79 the place for this to hold and close above. 114.55 the all-time high.
IYT (Transportation) – Swing high at 193.78. Today showed some solid consolidation.
IBB (Biotechnology) – 115 key pivotal resistance.
XRT (Retail) – 45.50 now pivotal.
Twitter: @marketminute
The author may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
