I have rarely seen this.
A second inverted hammer doji on the Volatility Index (VIX) and ETF (VXX)
That either means that buying is just about over and a stock market correction may be near, or we have yet to see parabolic type buying come in.
Regardless, something big is coming for stocks.
Yesterday, as far as the inside weeks, only two instruments in the Economic Modern Family were left with that pattern.
And both still are trading inside the prior week’s trading range.
The Transportation ETF (IYT) needs to clear its range: 197.95-188.93.
And the Retail Sector (XRT) needs to clear its range: 45.15-42.90.
Again, if IYT and XRT are signaling any impending weakness (both closed red today), watch the volatility index ETF (VXX) to take out 14.35-14.50 and hold.
Otherwise, should IYT and XRT clear the prior week’s high, put on your Dow at 30,000 hat.
On July 12-13, 2020, I will be speaking/teaching at the Modern Traders Summit in Philadelphia. Only 5 speakers, which means attendees will get a lot of attention, I hope to meet many of you there-https://moderntraderssummit.com/2020-speakers/
S&P 500 (SPY) New all-time highs at 334.19. 332.90 first line of support. Then lower 327.50
Russell 2000 (IWM) 165.56 key support to hold 168.15 must clear
Dow (DIA) 294.14 the all-time high and 288 underlying support
Nasdaq (QQQ) Inside day near the all-time high. Must hold 226.85 must hold.
KRE (Regional Banks) Back in an unconfirmed caution phase-remember this is where the first signs of weakness were before the virus hit the tape.
SMH (Semiconductors) Inside day so 144.86 now must hold.
IYT (Transportation) Back in an unconfirmed caution phase. 197.95 point to clear and 195 point to hold.
IBB (Biotechnology) Confirmed bullish phase with inside day which means 119.53 must hold.
XRT (Retail) 45.15 point to clear.
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.
