Coming into today, the Russell 2000 (NYSEARCA: IWM) was at a critical price support level on the 200-week moving average. $200 is the level, which right now looks threatened.
The Retail Sector ETF (NYSEARCA: XRT) was, and still is, intubated… especially under $70.00
The Biotechnology Sector (IBB) is still ok. In fact, I am keen on this sector.
The Semiconductors Sector (SMH) looks like she wants to visit 200.
The Transportation Sector (IYT), which we found hopeful, closed under key price support levels.
So, is there anything worth looking at right now?
As this is Technical Monday:
Adobe, INC (NASDAQ: ADBE) reports Wednesday March 12th.
Ulta Beauty (NASDAQ: ULTA) reports Thursday March 13th.
I have been watching both carefully as both are outperforming the benchmark, if you look at the leadership indicator.
Adobe is best known for graphic design, photo and video editing, and document management.
Ulta Beauty is best known for being a one-stop beauty retailer.
Besides outperforming the SPY, real motion shows momentum is okay.
Adobe momentum sits on the 50-DMA (blue).
Ulta momentum shows a bullish divergence as the red dots are above the 200-DMA (green) while the price is below the 200-DMA.
What are we watching for?
First, in the current environment, waiting for the earnings reports makes sense.
Then, I would pay attention to forward guidance given talk of recession or stagflation.
Third, I would wait for:
- ULTA to hold over $375 as that would look like a potential double bottom going back to November’s low.
- I would like Adobe to return over $450 the January calendar range high.
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
