Nothing surprises me in the market world of pump it up!
So, as the spread of the virus continues to dominate the headlines, the notion of the G7’s “emergency” meeting to deal with the shocks to the world economy (through Central Bank rate cuts) became the day’s panacea.
Which is why I am so very happy when one of my Economic Modern Family becomes a voice of reason.
Such is the case with the Transportation sector or ETF IYT.
Until the very last 20 minutes of the day, IYT had a picture perfect inside day.
In the last 20 minutes, IYT resigned to the fear of missing out and took out Friday’s high of 169.57.
What’s next?
Now, going into Tuesday, we have some reliable support areas to watch hold. (see levels below)
On the Daily chart, IYT shows the potential for a double bottom going back to 2018’s low.
The moving averages well overhead are both negative in slope. The 50-DMA accelerated its move towards the 200-DMA.
Granted, a rally to test the 200-DMA (green) would be impressive.
Nevertheless, well before that moving average, the 175 level is key.
The bigger question on investor’s minds should be whether this move today will be enough to get the Russell 2000, Transportation and his brethren back over their 200-DMAs to improve in phase?
Remember, the Family has classically underperformed the SPY and QQQs.
This is precisely what I plan to cover this coming Wednesday March 4th 1 PM as part of the very exciting webinar the called Women Teach Trading and Investing: Opportunities for Everyone in Today’s Markets
As volatility continues to soar and the markets trade like commodities did in the early 1980’s, please join my talented women trading pals and I for a “live in the market” inside view to my trading process.
S&P 500 (SPY) 304.50 is the 200-day moving average – it is now pivotal especially on a closing basis.
Russell 2000 (IWM) Thursday’s open was at 151.35 which makes that level pivotal for tomorrow. 149.15 is the key price support to hold.
Dow (DIA) 264.86 was Thursday’s opening level and is now pivotal price support to hold. 272.55 is the 200-day moving average.
Nasdaq (QQQ) 211.05 is the price support to hold with 221 the key 50-day moving average as resistance.
KRE (Regional Banks) 51.20 is the next point to clear with price support at 48.26
SMH (Semiconductors) 140.30 is strong price resistance and 132 is key support.
IYT (Transportation) 169.57 is pivotal price support, with 175 acting as resistance.
IBB (Biotechnology) 117.70 is key pivotal price support. 120 is strong resistance.
XRT (Retail) 40.77 is super pivotal price support, with 42.95 acting as resistance.
Volatility Index (VXX) Holding the 200-day moving average in this tape.
Junk Bonds (JNK) 108.53 is the key.
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.
