After oil surges in volume from the U.S import ban on Russian oil, the oil ETF (USO) closed roughly unchanged from its opening price yesterday.
This makes USO interesting to watch for Wednesday’s trading session since the price action shows a large battle between buyers and sellers remains underway. It’s also worth watching effected sectors like Transportation (IYT) and Retail (XRT) as they are nearing see support (below).
The stocks markets’ reaction remains choppy with investors watching prices at the pump increase along with other commodities getting hit with higher transportation costs.
With the cost to move goods increasing, this can negatively impact inflation numbers which have already passed over 7%. Nonetheless, the major indices are still holding above recent support levels.
Transportation Sector ETF and Retail Sector ETF
One sector that’s always good to keep an eye on is the transportation sector (IYT), which is holding over support from the lows at $243 – $245.
IYT will be especially interesting to watch if oil prices continue higher.
Along with the increase in shipping prices, we should also monitor the retail space through the retail ETF (XRT).
Currently, XRT is holding over its recent gap low from 2/24.
It can be useful to watch both XRT and IYT together as each can hint at a possible economic long-term slowdown through the movement and buying of goods.
Therefore, investors can watch for each to hold or break under key support levels as seen in the above charts.
Stock Market ETFs Trading Analysis and Summary:
S&P 500 (SPY) 410 is price support.
Russell 2000 (IWM) 188 is price support.
Dow (DIA) 322 is price support.
Nasdaq (QQQ) 318 is price support.
KRE (Regional Banks) 65.46 is next price support.
SMH (Semiconductors) 246 is a pivotal level.
IYT (Transportation) 243-245 is price support area.
IBB (Biotechnology) 118 is price support.
XRT (Retail) 70 is price support.
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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.
